Support for the decision to increase interest rates from the business world

The Central Bank’s Monetary Policy Committee (PPK) (CBRT) raised the policy rate for the first time after a 27-month hiatus.

The Board raised the policy rate to 15 percent for a record 650 basis point increase.

Representatives of the business world, in their statement, made assessments of the increase in the interest rate of the Central Bank.

ISO PRESIDENT: WE SUPPORT EVERY EFFORT

Erdal Bahçıvan, Chairman of the Istanbul Chamber of Industry (ISO) board of directors, commented on the Central Bank of the Republic of Turkey (CBRT) interest rate decision: “We see it as a step towards establishing and maintenance of financial stability.

In his written statement, Bahçıvan noted the importance of the steps taken in this regard, noting that they attach great importance to the issue of financial stability, which gives industrialists the opportunity to make investment and production forecasts in a challenging global economic environment.

Bahçıvan stated that, as ICI, they support all the efforts of the CBRT to ensure this, while going through a period where financial stability must be more carefully maintained in a global world full of uncertainties, and made the following statements:

“Therefore, we see the decision taken today as a step towards establishing and maintaining financial stability, which we see as a complementary element to many opportunities facing the Turkish economy. We see the decision as a message that the fight against inflation, which has become our country’s most urgent economic problem, will continue with determination, and we find it valuable. We believe that for this fight to be successful, rational and consistent policies will be implemented in areas such as public finance and the banking system, which are vital for the proper functioning of the economy, so that growth is based on a qualified base. and sustainable soil, as well as high.”

Bahçıvan affirmed that with the decision taken they want to start a period of permanent financial stability desired by the financial markets, especially the fight against inflation, and with it, the real sector, in the medium term, thus increasing the quality of finances and the opportunities to access financing.

PRESIDENT ITO: STRENGTHENED REFLECTION OF MONETARY POLICY

Istanbul Chamber of Commerce (ITO) Chairman Şekib Avdagiç stated that the Center’s interest rate decision strengthened the monetary policy reflex, saying: “For us, what is important now is that credit processes of the banks return to routine”.

Avdagic, in his written statement, stated that the interest rate decision strengthened the monetary policy reflex, and that it is now important for banks to return to routine lending processes. In the statement, it was emphasized that the CBRT’s decision to increase the policy rate to a level that would reflect the market was reasonable and normal.

Avdagiç affirmed that the trio of production, employment and exports is at least as important as the trio of interest, exchange rate and inflation, and that they cannot be renounced.

“There is a need for banks to return to routine lending processes. Monetary tightening should not slow production lines. The level of the policy rate must be supported by a series of measures for production and trade. We also find the message of the Central Bank to support strategic investments valuable. We believe that a predictable, easy to understand and coordinated set of policies will pave the way for the real sector as well.”

İSTİB PRESIDENT: MEASURE TAKEN UNDER EXTRAORDINARY CONDITIONS

Ali Kopuz, Chairman of the Istanbul Commodity Exchange (ISTIB), said:

Noting that the high level of interest rates is not a very desirable situation in terms of economic activity, Kopuz emphasized that this increase was done in order to reduce inflation to a reasonable rate.

Kopuz said: “Therefore, I regard this monetary tightening step as a step taken in extraordinary circumstances, and I believe that it is aimed at removing the negativity caused by the deterioration of price stability.”

Mentioning that the increase in the cost of borrowing led economies into recession after one point, Kopuz used the following statements:

“At this point, it seems vital to me to strike a balance between bank and commercial lending in terms of access to finance. Contrary to the expectations of much higher interest rates in some circles at home and abroad, today’s decision seems to have preferred a relatively reasonable adjustment rate. These increases can continue gradually. However, at the end of this process, our ultimate goal should be low inflation, low interest rates, quality growth with value-added production and exports.”

MÜSİAD: WILL PLAY A CRITICAL ROLE IN PRICE STABILITY

Mahmut Asmalı, Chairman of the Association of Independent Entrepreneurs and Industrialists (MUSIAD), said: “We believe that the interest rate decision will play a very important role in ensuring price stability.”

Noting Turkey’s medium- and long-term financial obligations, Asmalı said he believes today’s CBRT interest rate decision will play a key role in maintaining price stability.

Asmalı stated that the fact that the policy rate is not the only solution for price stability should not be forgotten, and made the following statements:

“The implementation of a comprehensive policy in the fight against inflation and the rapid implementation of other complementary elements of monetary policy will increase the appetite and motivation of the markets. Furthermore, the predictability and consistency of monetary policy is just as important as the level of the policy rate. At this point, the correct and healthy communication method established by the entire administration of the new economy, especially our Minister of Finance and Finance, Mehmet Şimşek, with the markets has been very pleasant and reassuring for the business world.”

Asmalı stated that they wholeheartedly believe that Turkey is moving towards its long-term goals with more determined and firm steps during this period when economic policies are acted in a planned and coordinated manner. (AA)