Turkish Central Bank rate cut brings recovery of loan interest

DAILY SABAH
ISTANBUL
Published 23.04.2016 03:03

The deputy prime minister in charge of the economy, Mehmet Şimşek, said that the central bank's rate cut decision on the upper band of the interest rate corridor would lead to a recovery in loan interests.

Speaking to NTV, Şimşek said that normalization in global monetary policies were delayed to some other time. Explaining that the world was going through a period of a low growth rate, Şimşek said that as a result of the central bank's discount decision, some recovery will be seen in loan interests. According to Şimşek, for the permanent recovery of loan interests, the resource input to Turkey and the amount of savings should be increased.

Regarding the appointment process of the central bank's new governor, Murat Çetinkaya, Şimşek said that the process was handled well. A couple of weeks before the appointment, a few names were evaluated, and after the president and prime minister's negotiation, the decision was made. Saying that Çetinkaya was a trustworthy friend, Şimşek added that those who were expecting a crisis were disappointed.

Şimşek also evaluated the new job position definitions at the central bank, stressing that these discussions were out of place and the job definitions are clear. Indicating that price stability is essential, Şimşek said that Turkey should reduce the inflation rate to single digits.

In He also said that fund input to Turkey has begun, and this can be seen in interest rates and the borrowing rate of interest of the Treasury. He said that the Turkish Lira gained ground and that this would positively reflect inflation.

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