The Central Bank raised its policy rate to 46% yesterday. Following the interest rate decision, the dollar and euro started the first trading day with a slight increase. The effects of the Central Bank’s interest rate move are being closely monitored in the domestic markets. The USD/TRY started around 38.15 today with an increase of 0.44%. The EUR/TRY, on the other hand, changed hands at 43.53. With yesterday’s decision, the Central Bank raised the policy rate to 46%, at which it funds the market, and the overnight borrowing rate to 49%. The CBRT announced that it will resume the weekly repo auctions it halted about a month ago. Investors will be monitoring how much funding is provided to the market with the repo auction expected to start today and its impact on the current overnight rates at 46%. Due to the Easter holiday abroad, most markets will be closed, leading to an expected decrease in trading volumes. According to the CBRT’s schedule, the next interest rate decision will be made in two months. Goldman Sachs stated that if no new shocks occur in the markets, interest rate cuts are expected to resume in July. The bank increased its year-end policy rate forecast from 28.5% to 33%.