26.07.2019 Ankara
The Union of Chambers and Commodity Exchanges of Turkey (TOBB) President M. Rifat Hisarcıklıoğlu stating that the Central Bank’s decision to cut interest rates will lower both the funding costs and deposit rates of banks, “Now it's the banks’ turn. I'm calling on them. Banks must also make sacrifices and this reduction should reflect on loan interests as soon as possible.”
Hisarcıklıoğlu
responded to questions relating to yesterday's Turkish Central Bank Monetary
Policy Committee (MPC) meeting wherein the policy rate was lowered to the 425 points
base.
Rifat
Hisarcıklıoğlu stated that the Central Bank has made a significant reduction in
policy interest rate considering the decline in inflation and the positive
outlook for liquidity in global markets.
Hisarcıklıoğlu
stated that the next meeting of the MPC will be held in September and that the
Board made the 2-month interest rate cut ahead of it. Therefore, Hisarcıklıoğlu
stated that the positive developments in the main trend of inflation were
effective in the interest rate cut.
Stating
that there is a moderate recovery tendency in growth-focused economic activity
and that the gradual recovery in the economy is expected to continue,
Hisarcıklıoğlu pointed out that the improvement in inflation continues but may
remain slightly below the forecasts.
Hisarcıklıoğlu
emphasized that the interest rate cut of the Central Bank gives morale to the
business world and said that they would like the discounts to continue in the
coming months.
- “Now, it is the banks’ turn”
Hisarcıklıoğlu
stated that the interest rate cut would reduce both the funding cost and
deposit rates of the banks and said, “Now it's the banks’ turn. I'm calling on
them. Banks must also make sacrifices and this reduction should reflect on loan
interests as soon as possible.”
Hisarcıklıoğlu
said that the effect of the interest rate cut will be reflected on the real
sector and the economy in general, the domestic market will be mobilized and
employment and investment will be positively affected by all of these.”