Is the stock market a victim of the interest rate reform?
▫ After several years of stabilizing the interbank interest rate in the range between 23 and 24 percent, the central bank finally announced a change in the interest rate framework.
▫ Based on this change, the interbank interest rate corridor was moved from the previous range to a range between 26 and 34% and the interbank interest rate also reached 33.92%; A rate that actually brings him closer to the ceiling of the new corridor.
▫ But the importance of this change is not limited to a rate increase. Over the past few years, interest rates have remained almost constant while inflation has risen rapidly. In such a situation, the gap between nominal financing rates and inflation became one of the signs of the ineffectiveness of monetary policy.
▫ Therefore, the increase in the interbank interest rate should be considered as a step to correct this inefficiency; However, the movement of the interest rate towards the ceiling of the new corridor shows that even this level of interest may not fully correspond to the real conditions of the economy.
The link of this program in Aparat.