Union of Chambers and Commodity Exchanges of Turkey

Hisarcıklıoğlu responded to questions relating to yesterday's Turkish Central Bank Monetary Policy Committee (MPC) meeting wherein the policy rate was lowered to the 425 points base.

Rifat Hisarcıklıoğlu stated that the Central Bank has made a significant reduction in policy interest rate considering the decline in inflation and the positive outlook for liquidity in global markets.

Hisarcıklıoğlu stated that the next meeting of the MPC will be held in September and that the Board made the 2-month interest rate cut ahead of it. Therefore, Hisarcıklıoğlu stated that the positive developments in the main trend of inflation were effective in the interest rate cut.

Stating that there is a moderate recovery tendency in growth-focused economic activity and that the gradual recovery in the economy is expected to continue, Hisarcıklıoğlu pointed out that the improvement in inflation continues but may remain slightly below the forecasts.

Hisarcıklıoğlu emphasized that the interest rate cut of the Central Bank gives morale to the business world and said that they would like the discounts to continue in the coming months.

- “Now, it is the banks’ turn”

Hisarcıklıoğlu stated that the interest rate cut would reduce both the funding cost and deposit rates of the banks and said, “Now it's the banks’ turn. I'm calling on them. Banks must also make sacrifices and this reduction should reflect on loan interests as soon as possible.”

Hisarcıklıoğlu said that the effect of the interest rate cut will be reflected on the real sector and the economy in general, the domestic market will be mobilized and employment and investment will be positively affected by all of these.”