Be careful when choosing the maturity of your deposit! How does the Central Bank’s new step affect the market? Economist Bayram answered – Latest News

Milliyet.com.tr/ Explaining the details about the issue to milliyet.com.tr, Certified Public Accountant and Economist Muhammet Bayram used the following statements in his speech:

“The Central Bank kept the policy interest rate at 50 percent. This means that the Central Bank will draw a plateau at this level. Currently, banks are borrowing overnight at a rate above the policy rate, that is, at a cost of 53 percent. Public banks have deposit interest rates between 53 percent and 58 percent. Private banks give interest up to 60 percent.

WILL INTEREST RATES INCREASE FURTHER?

Banks may increase deposit interest rates a little more. Because Central Bank Governor Fatih Karahan said in his statement that ‘sterilization tools will be used’. Banks’ costs may increase further. Required reserves may increase, so banks may raise deposit interest rates further to raise more cost-effective money.

WILL INTEREST RATES EXCEED 60 PERCENT?

Currently, deposit interest rates in banks have approached 60 percent. We can predict that deposit interest rates will rise above 60 percent after the Central Bank’s next monetary policy decision. Currently, up to 75 percent interest is paid on TL deposits returned from KKM.

WHICH SHOULD BE PREFERRED AMONG GOLD, FOREIGN EXCHANGE, STOCK EXCHANGE AND DEPOSITS?

Here, deposit interest is the first instrument to be considered. Interest rates are nearing their peak. Therefore, a person who deposits his money today can earn a return for a period of 1 year at a high interest rate.

If a basket is to be created, deposits can be placed predominantly, followed by gold. I do not evaluate investing in foreign currency. It is possible to invest in the stock market. With the arrival of foreign investors, the stock market will rise significantly. I think that the stock market will exceed 10 thousand points in a short time.

HOW DOES THE REQUIRED RESERVE STEP AFFECT THE MARKET?

We can say that with the use of sterilization tools and the increase in required reserves of banks, banks will compete for deposits and deposit interest rates in banks will be increased even more.

BE CAREFUL ABOUT SELECTION OF DEPOSIT MATURITY!

Currently, it is more logical for banks to choose a 32-day maturity. “If the interest rate is not increased at the next Central Bank meeting, I recommend choosing a 1-year maturity for the next period.”