Loan interest rates compete with inflation

Tolga UĞUR

While borrowing costs increased with the change in economic policies after the elections, average interest rates on consumer and consumer loans began to approach annual inflation of 61.5 percent. Market interest rates, which were well above the Central Bank’s policy rate of 8.5 percent before the May election, continued to rise, with the CBRT raising interest rates by 2,150 basis points in recent four meetings.

INCREASED BY 60 PERCENT

According to data from the Central Bank, the average interest rate on consumer loans in TL exceeded 59 percent in the week of September 29. The average interest rate on consumer loans decreased slightly last week to 57.20 percent. Since June, consumer loan interest has increased by 47.15 percent and consumer loan interest has increased by 60.35 percent. According to the data, the biggest increase in interest rates last week was on commercial loans. The average interest rate on TL commercial loans increased by 3.5 points in the last week of September, reaching 46 percent. Commercial loan interest, which was below 15 percent in early June, has tripled in the past three months. The maximum rate for commercial loans is:
It rose to 69 percent with the increase in CBRT interest rates in September. In the week of September 29, the average interest rate for home loans was 42 percent and for vehicle loans was 40 percent.

Deposit interest rates increased

There was also a significant increase in TL deposit interest rates in the week of September 29. Deposit interest rates have been rising for the past six weeks, as economic management tries to encourage the exit of Protected Exchange Deposits (KKM) and aims to save on deposits in TL rather than foreign currency. Interest rates on TL deposits with a maturity of up to 3 months increased weekly by 2.5 points and exceeded 45 percent. The average interest on deposits with a maturity of up to 6 months exceeded 38 percent, and the interest on TL deposits with a maturity of up to 1 year exceeded 35 percent. The interest rate applied to term deposits of up to one month is 33.2 percent.