A political issue that had stood out as a source of uncertainty over Türkiye’s markets was resolved last week. The lawsuits seeking to annul two congresses of the main opposition Republican People’s Party (CHP) were rejected. This development, which had been causing notable volatility particularly in the stock market, was thus removed from the agenda. With the easing of tension on Friday, the Borsa Istanbul (BIST) 100 index rose by 3.14% to close at 10,941 points. On a weekly basis, the index gained 7.18%, ending a four-week losing streak.

During the week, the BIST 100 also surpassed its 100-day moving average of 10,630 and closed slightly above the 50-day moving average support at 10,900. From now on, the stock market is expected to enter a period where economic developments will have a greater influence. In this regard, last week’s interest rate decision by the Central Bank of the Republic of Türkiye (CBRT) offers important signals.

Following two large rate cuts in previous meetings, the CBRT opted for a 100-basis-point reduction this time. The policy statement noted that the underlying trend of inflation was rising, that the disinflation process had slowed, and that recent price movements—especially in food—posed risks to this process.

A political issue that had stood out as a source of uncertainty over Türkiye’s markets was resolved last week. The lawsuits seeking to annul two congresses of the main opposition Republican People’s Party (CHP) were rejected. This development, which had been causing notable volatility particularly in the stock market, was thus removed from the agenda. With the easing of tension on Friday, the Borsa Istanbul (BIST) 100 index rose by 3.14% to close at 10,941 points. On a weekly basis, the index gained 7.18%, ending a four-week losing streak.

During the week, the BIST 100 also surpassed its 100-day moving average of 10,630 and closed slightly above the 50-day moving average support at 10,900. From now on, the stock market is expected to enter a period where economic developments will have a greater influence. In this regard, last week’s interest rate decision by the Central Bank of the Republic of Türkiye (CBRT) offers important signals.

Following two large rate cuts in previous meetings, the CBRT opted for a 100-basis-point reduction this time. The policy statement noted that the underlying trend of inflation was rising, that the disinflation process had slowed, and that recent price movements—especially in food—posed risks to this process.