Central Bank credit card decision: Will not change until the end of the year

The Central Bank of the Republic of Turkey Monetary Policy Committee, meeting under the chairmanship of Hafize Gaye Erkan, raised the policy rate by 500 basis points from 35 percent to 40 percent.

Accordingly, credit card interest rates were also expected to increase. 

REMAINED FIXED UNTIL THE END OF THE YEAR

The Central Bank did not make any changes to credit card interest rates with the decision it took.

The following statements were included in the announcement made by the CBRT:

“The reference rate used in the calculation of the maximum interest rates to be applied to credit card transactions and the maximum commission rates to be applied to member merchants is calculated and announced using the method determined within the scope of the Communiqué on Fees That Can Be Charged by Banks to Commercial Customers (Number: 2020/4).

The reference rate is calculated by taking into account the lower of the weighted average flow interest rate applied by banks to 32-45 day maturity Turkish lira deposits and ten percent above the policy interest rate, and is announced on the fifth business day before the end of each month. The reference rate is updated if it changes by more than five percent up or down from the last announced rate.

According to the realization of the weighted average flow interest rate applied by banks to 32-45 day maturity Turkish lira deposits used in the reference rate calculation, it has been calculated that the reference rate to be announced for December will remain constant.

Accordingly, there will be no change in maximum credit card interest rates and merchant commission rates until the end of the year.

The reference rate for December will be announced on November 24, 2023, which is the fifth business day before the end of the month.”