Deposit interest rates remain stable at high levels

The tight monetary policy initiated by the Central Bank of the Republic of Turkey in March has led to significant changes in financial markets. The increase in foreign exchange reserves and the decline in Turkey's risk premium have contributed to the stabilization of deposit interest rates. Currently, the highest interest rate remains stable at 53 percent.

The monetary tightening implemented since March has resulted in an increase in foreign exchange reserves, as well as a decline in foreign currency deposit accounts and a shift toward the Turkish Lira. As Turkey's 5-year credit default swap (CDS) premium has fallen to the 300 basis point level, expectations that interest rates have reached their peak have strengthened.

Allbatross Portfolio Research Director Serkan İmişiker stated that inflows into foreign currency funds continue and that household foreign currency deposits are decreasing. İmişiker noted that regular inflows into TL funds are continuing and that the period when the tightness of monetary policy was felt most intensely is now behind us.

The Central Bank's weighted average funding rate fell to 47.79% at the end of last week. This situation reinforces the expectation that interest rates have peaked and will now follow a horizontal trend.

The 53 percent deposit interest rate reached three weeks ago is being maintained in the market. Among the highest rates offered by banks, Türkiye Finans Günlük Hesap and Fibabanka Kiraz Hesap stand out with 53.00%. Other banks offer rates ranging between 50% and 52%.

According to calculations based on a 53 percent interest rate, the 32-day net return on a 1 million TL deposit is calculated at approximately 39 thousand 496 TL.