Attention those with money in KKM! New decision from the Central Bank regarding deposit interest rates

The Central Bank of the Republic of Turkey (TCMB) Monetary Policy Committee (PPK) has announced the interest rate decision that the markets were eagerly awaiting. The committee decided to keep the policy rate constant at 50 percent.

In addition to the policy rate, a new decision was also made for TL deposit accounts.

According to the announcement made by the TCMB, the upper limit of the interest rate applied to the required reserve amount that must be established for Foreign-Exchange-Protected Deposits (KKM) based on the renewal and transition rate to TL has been set at 60 percent of the policy interest rate, and the upper limit of the interest rate applied to the required reserve amount that must be established for TL deposits based on the level of the transition rate to TL has been set at 80 percent of the policy interest rate.

HIGHEST INTEREST RATE IS 30 PERCENT FOR KKM, 40 PERCENT FOR DEPOSIT ACCOUNTS

Thus, the highest interest rate that banks meeting the specified conditions can receive for the established required reserve amount has become 30 percent for KKM accounts and 40 percent for TL deposit accounts.

In its press release on February 5, the TCMB stated that interest would be applied every 3 months to the required reserves established for TL deposit and KKM accounts of deposit banks that meet the conditions determined for the purpose of strengthening the monetary transmission mechanism, increasing the share of TL deposits, and supporting the transition from KKM to TL deposits.