12.09.2019 Ankara
The Union of Chambers and Commodity Exchanges of Turkey (TOBB) President M. Rifat Hisarcıklıoğlu gave his assessment in regards to the Central Bank's one-week reduction of the repo auction rate.
Hisarcıklıoğlu
noted the following:
“The
Central Bank's bold interest rate cut has boosted business morale.
The
improvement in the inflation outlook, the improvement in the current account
balance and the signals of global monetary expansion are strengthening the hand
of the Central Bank.
Recently,
there has been a moderate recovery in domestic economic activity due to
interest rate cuts.
We
hope that the gradual recovery in the economy will continue. But steps are
needed to strengthen this process.
The
Central Bank's decision to cut interest rates will reduce the funding cost and
deposit interest rates of banks. So now it's the banks’ turn.
They
should do their part and reflect this discount on credit interest as soon as possible.
The recent decline in interest rates has not yet been adequately reflected in
loan rates. This reflects on production, employment and investment decisions of
our companies.
Now,
a support for the growth of the economy should come from banks. Banks should
lower their loan interest so that appetite for investment increases.”