Bank interest rate drop ?

[steveb1]

hsbc 8%

[Stressed Eric]

the interest rates in all the banks seem to be dropping every couple of weeks...does anyone know why when the central bank hasn't altered their rates?

[davybill]

Looks like the central bank have dropped there rate from 11%percent to 9and a half now, Eric

[usedbustickets]

Looks like the central bank have dropped there rate from 11%percent to 9and a half now, Eric

If the 'base' rate has dropped to 9.5% then I'd still expect to see the retail banks offering better rates than the 9.5%, but clearly they are not... either the base rate is lower than 9.5% or something strange is going on with Turkey retail bank's interest rate???

[usedbustickets]

Yep the 9.5% figure is incorrect.  I just checked the Turkish central bank (Repo) rate and it is 5.75% - set on 4th August 2012 - which explains the drop (plummet!!)  in retail bank interest (savings) rate of late.

[ovacik2]

Repo Rate at closing 26.09.2012. 5.1%  Garanti Bank deposit A/c 8.25%


Repo Rate Definition.

The discount rate at which a central bank repurchases government securities from the commercial banks, depending on the level of money supply it decides to maintain in the country's monetary system. To temporarily expand the money supply, the central bank decreases repo rates (so that banks can swap their holdings of government securities for cash). To contract the money supply it increases the repo rates. Alternatively, the central bank decides on a desired level of money supply and lets the market determine the appropriate repo rate. Repo is short for repossession.

[kentish maid]

ING Orange Account now 8.5% (Monday 24 Sept) - are there any other better daily interest easy access accounts around at the moment please?

[Liz 101]

ING Orange is the only daily interest account at the mom.

[jackstee]

Maybe Banker would like to explain why ??

[Rimms]

Maybe Banker would like to explain why ??

Banker  ( Alper) isn't with ING anymore but at Garanti bank