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He said these steps are aimed at supporting financial stability and strengthening the money transfer mechanism, after noting the need to address the growing gap between interest rate and loan rates when he cut interest rates on Thursday.
Turkish authorities, including the central bank and the Banking Regulatory and Supervision Agency, have previously taken measures to limit lending to businesses except those whose exports are worth more than their imports, as part of an economic plan that aims to reduce a large current account surplus.
Last month, business groups complained about the regulations and said manufacturers were unable to obtain low-interest financing.
Timothy Ash, of BlueBay Asset Management, said the central bank’s new rules to cut bank lending rates are making banking very complicated.
Ash added in a tweet on Twitter ” This will increase fears of overheating (of the economy) and worsen inflation And the pressure on the lira increases”.
and walked over Turkish lira From its all-time low Friday at 18.105 against the dollar after the Turkish central bank suddenly cut its interest rate, taking advantage of an unexpected influx of foreign funds recently, to continue its unconventional economic experiment.
There are no signs of improving conditions and analysts expect the depreciation of the lira and the rise in inflation to continue for a longer period.
Data showed that the central bank has kept the interest rate at 14 percent since December after previous cuts led to a currency crisis and nearly tripled net foreign reserves since early July to $ 15.7 billion. dollars.
Some analysts said this delay paved the way for the bank to take its final steps on the path of unconventional politics advocated by the president. Recep Tayyip Erdogan.
Exports, in turn, have increased, supported by targeted low lending rates. In addition to inflows from abroad, Turkey’s tourist season is on the verge of reaching pre-pandemic figures. The dealers also say that a financing agreement has been reached with Russia, but there have been no comments from the authorities.
JP Morgan analysts described the interest rate cut as “Opportunity tapped and driven by an increase in net and gross foreign exchange reserves … most likely due to a combination of tourism receipts offsetting the current account deficit … and Russian Rosatom’s US dollar deposits for a power plant project nuclear”.
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He claimed these measures are aimed at supporting money balance and strengthening the funds transfer mechanism, just after noting the need to handle the increasing gap between curiosity fee and bank loan premiums when he slice interest costs on Thursday.
Turkish authorities, such as the central lender and the Banking Regulatory and Supervision Agency, have earlier taken actions to limit lending to firms other than individuals whose exports are worth more than their imports, as portion of an economic plan that aims to reduce a massive existing account surplus.
Last month, business enterprise teams complained about the regulations and claimed manufacturers have been unable to obtain small-interest funding.
Timothy Ash, of BlueBay Asset Management, mentioned the central bank’s new rules to minimize lender lending charges are generating banking very challenging.
Ash extra in a tweet on Twitter: “This will raise fears of a frenzied acceleration (of the financial state) and exacerbate inflation And the tension on the lira improves ”.
and walked around Turkish lira From its all-time reduced Friday at 18.105 versus the greenback immediately after the Turkish central lender all of a sudden cut its interest price, using edge of an unforeseen inflow of foreign funds just lately, to continue its unconventional financial experiment.
There are no signals of improving upon ailments and analysts assume the depreciation of the lira and the increase in inflation to go on for a for a longer period period of time.
Info confirmed that the central bank has kept the curiosity fee at 14 per cent since December just after earlier cuts led to a currency disaster and almost tripled net international reserves considering that early July to $ 15.7 billion. bucks.
Some analysts reported this delay paved the way for the bank to take its final methods on the path of unconventional politics advocated by the president. Recep Tayyip Erdogan.
Exports, in transform, have improved, supported by focused minimal lending prices. In addition to inflows from abroad, Turkey’s vacationer year is on the verge of reaching pre-pandemic figures. The sellers also say that a financing agreement has been arrived at with Russia, but there have been no responses from the authorities.
JP Morgan analysts explained the price slice as “an chance driven by an enhance in web and complete foreign exchange reserves … most likely thanks to a blend of tourism receipts offsetting the current account deficit … and US greenback deposits by Russian Rosatom for a nuclear electricity plant challenge.
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