Central Bank's interest rate cut decision has not been reflected by banks

Confederation of Turkish Tradesmen and Craftsmen (TESK) President Bendevi Palandöken announced that for economic activity to be stimulated, the interest rate cuts made by the Central Bank of the Republic of Turkey (TCMB) must be reflected to the public without delay.

In a written statement, Palandöken recalled the 100 basis point interest rate cut implemented by the TCMB.

Emphasizing that citizens should be able to feel this reduction immediately through credit cards and similar financial instruments, Palandöken stated the following:

"For the economy to revive, the interest rate cuts made by the TCMB must be reflected to the citizens. As long as these cuts are not felt in all expenditure items such as food, housing, health, and education, economic relief cannot be achieved. Because the interest rate cut is not reflected to the citizens, the cost of living and high inflation continue to have an impact. People are right to ask, 'The Central Bank lowered interest rates, but why can't we feel it?' Tradesmen are also unable to benefit sufficiently from these cuts, even though the state subsidizes loan interest rates."

Palandöken noted that it is mandatory to act together in the fight against inflation, adding that banks bear a great responsibility in this process.

Pointing out that the interest rate cut should be reflected to the citizens the very next day, Palandöken continued his words as follows:

"Almost a week has passed, but no step toward convenience or reduction that would directly reflect to the citizens has come from the banks. In this situation, citizens also fall into the mindset that 'this improvement trend in the economy has no benefit for us.' This must definitely be corrected. It is of great importance that everyone fulfills their duty so that social trust and awareness can be formed."

News Source: 12punto