On November 21, 2024, the Central Bank of the Republic of Turkey (CBRT) held its 11th Monetary Policy Committee meeting of the year, deciding to keep the benchmark interest rate unchanged at 50%. This decision aligns with market expectations, as the Turkish lira was trading at 34.5488 against the dollar prior to the announcement. Economists predict that if the upcoming inflation data shows further improvement, a rate cut of 200-250 basis points could occur as early as December.
In a separate development, Ukraine reported a significant missile attack by Russian forces on the city of Dnipro. According to Ukrainian military sources, the attack involved various types of missiles, including an intercontinental ballistic missile (ICBM) known as the RB-26 Rubezh, launched from the Astrakhan region of Russia. The primary targets included factories and critical infrastructure. Six of the eight missiles launched were intercepted, but two individuals sustained injuries during the assault.
This incident marks a potential escalation in the conflict, as it would be the first instance of Russia employing an ICBM in the ongoing war against Ukraine. The RB-26 Rubezh is designed to carry nuclear warheads and has a range of approximately 5,800 kilometers. The attack comes amid heightened security concerns, prompting several embassies, including those of the U.S., Spain, Italy, and Greece, to close operations in Kyiv due to the risk of air strikes.
Additionally, the geopolitical landscape is shifting, with reports indicating that North Korean troops may be arriving in Russia to assist in the conflict. In response to the evolving situation, U.S. President Joe Biden has authorized the use of American-made long-range missiles by Ukraine for strikes within Russian territory, further complicating the dynamics of the war.