Bloomberg—JPMorgan experts are waiting to buy Turkey’s longest-lasting lira bonds until interest rates hit 35.7%. This choice is based on recent actions by the Central Bank of Turkey.
Because of these actions, the 10-year lira bond rate has increased, reaching over 29%. The Central Bank made big changes, like raising its main rate by a large amount and moving towards normal market operations. They did this because the government had controlled the rates before, slowing down the lira bond market.
The rules are being relaxed slowly to re-inspire foreign investors’ interest in Turkey’s assets and affect the USDTRY exchange rate. JPMorgan is still very interested in the lira. They are considering the risks of rising prices, how competitive the lira is, and what might happen if business loan goals are met.
The report also discusses stopping the need to buy government bonds, fines for banks that charge high lending rates, and changes in fixed-rate bonds. This shows that Turkey is moving towards a more open market and less government control over how money works.