Central Bank decision on personal, commercial, and vehicle loans

The Central Bank of the Republic of Turkey (TCMB) has taken additional tightening measures to support its tight monetary policy stance.

The TCMB has issued an announcement regarding additional tightening measures.

The announcement stated that within the scope of the securities maintenance requirement based on credit growth, it has been decided to reduce the monthly growth limit for Turkish Lira commercial loans from 2.5 percent to 2 percent, lower the monthly growth limit for personal loans from 3 percent to 2 percent, and maintain the 2 percent limit for vehicle loans.

"WORK IS UNDERWAY ON ADDITIONAL MEASURES"

The announcement noted that in order to increase the effectiveness of the implementation regarding credit growth limits, work is continuing on establishing reserve requirements based on credit growth in addition to the securities maintenance requirement, and included the statement: "Furthermore, work is underway on additional measures to strengthen the monetary transmission mechanism."

In the summary published regarding the TCMB Monetary Policy Committee's meeting on February 22, the following statements were used: "The monetary policy stance will be tightened in case a significant and persistent deterioration in the inflation outlook is foreseen.

In the event of developments outside of what is projected regarding credit growth and deposit interest rates, the monetary transmission mechanism will be supported."

News Source: İHA