Central Bank announces latest figures: A first in deposit interest rates in 21 years

The Central Bank of the Republic of Türkiye (CBRT) interest rate hikes have continued to drive an increase in Turkish Lira deposit interest rates over the past week.

According to a report by Sözcü based on Central Bank data, the average interest rate for Turkish Lira deposits with a maturity of up to three months, which is considered a benchmark, reached 50.49 percent last week, hitting a 21-year high. Interest rates of 50 percent and above in this category were last seen in October 2002.

Last week, average interest rates reached 41.97 percent for maturities up to one month, 47.46 percent for maturities up to six months, 39.35 percent for maturities up to one year, 38.10 percent for maturities of one year or longer, and 44.94 percent overall.

LOAN INTEREST RATES AT 60 PERCENT LEVELS

Interest rate hikes are also continuing for consumer and commercial loans.

The average consumer loan interest rate reached 61.50 percent last week, marking a 21.5-year high since April 2002. This rate was at the 25 percent level in March 2023, before the elections.

Average commercial loan interest rates, which had fallen to 13 percent before the elections, also saw a 21.5-year high since April 2002 last week, reaching 53.10 percent.

Average vehicle loan interest rates, which were at 47 percent last month, fell to 36.76 percent last week.

Meanwhile, housing loan interest rates remained near a 20-year high last week, averaging 42.58 percent.

CBRT APPROACHING THE END OF INTEREST RATE HIKES

The CBRT raised the policy rate from 8.5 percent to 40 percent during the June-November period.

The CBRT is expected to raise the interest rate by another 250 basis points at its meeting this week.

In its statement regarding the 500 basis point interest rate hike decision on November 23, the CBRT said, "the pace of monetary tightening will be slowed down and the tightening steps will be completed in a short period of time."

News Source: 12punto