What are the requirements for low-interest loans? Hakan Kara explains

The Central Bank of the Republic of Turkey (TCMB) kept interest rates steady in April. Addressing the high cost of credit due to high interest rates, former TCMB Chief Economist Hakan Kara made a statement via his X account. 

Kara's post is as follows:

“If we want to access TL loans under favorable conditions, we must remember that this is only possible in a low-inflation environment.”

TL krediye uygun koşullarda erişmek istiyorsak bunun ancak düşük enflasyon ortamında mümkün olacağını hatırlamak gerekiyor. pic.twitter.com/ABnDToyDeV

— Hakan Kara (@ali_hakan_kara) May 5, 2024

INTEREST RATES SINCE 2021...

During the presidency of Naci Ağbal, the Central Bank had set the policy rate at 19 percent in March 2021, which was then reduced to 8.5 percent through cuts made between 2021 and 2022 during the tenure of Şahap Kavcıoğlu.

With the appointment of Hafize Gaye Erkan to replace Şahap Kavcıoğlu, the Central Bank raised interest rates for the first time in 27 months in June 2023, increasing the policy rate from 8.5 percent to 15 percent.

During the 7 months and 23 days that Hafize Gaye Erkan served as President, she raised the interest rate to the 45 percent level.

Following Erkan's resignation, her deputy Fatih Karahan was appointed in her place. During Karahan's tenure, the interest rate was kept steady at 45 percent at the first Monetary Policy Committee meeting in February.

The TCMB raised the interest rate to 50 percent due to the “deterioration in the inflation outlook,” which had been expected to remain steady before the March 31 local elections. The Central Bank decided to keep the interest rate steady at its meeting in April.

News Source: 12punto