The decline in the five-year credit default swap (CDS), which shows Turkey’s loan repayment status and is called risk premium, continues in the week of the CBRT’s interest rate decision. Turkey’s CDS premium, which fell below 400 basis points at the beginning of November, was below 350 basis points last week. Turkey’s CDS saw its lowest level since March 19, 2021, with 343.1 basis points in today’s transactions.
All eyes on the Central Bank decision
The Central Bank of the Republic of Turkey (CBRT) will announce its November interest rate decision on Thursday at 14:00. Markets expect the bank to slow down its interest rate hike and raise it by 250 basis points.
The Central Bank increased the interest rate by a total of 2650 basis points in five meetings: 650 basis points in June, 250 basis points in July, 750 basis points in August, and 500 basis points each in September and October.