I bet that got your attention
This doesn't really affect those dependent on TL time deposit accounts, for now that is. However, if you've a TL mortgage or credit card then due to pressure from the government most banks have reduced the interest you pay on loans and credit agreements. The reductions vary between banks but it looks to be around a 10% cut.
The government deny putting pressure on the banks, but in a recent speech by the prime minister, he basically called the banks "loansharks".
What is probably more important to those who are depositors are the comments made by the deputy prime minister recently:
“
We have been in dialogue with lenders. Our purpose is to accelerate the interest rate cuts, mainly on deposit rates, which are higher than the rate of inflation in Turkey”
Nothing like stating the obvious, eh?
My usual interest rate feed isn't working so I had a quick look at Akbanks TL time deposit account rate - 8.5%. That seems low to me and I don't any historic rate data for them. Garanti seem to be still offering 10.25% but Finans are now down to 9%.
They're all still (gross) above the rate of inflation but the question is, bearing in mind the deputy PM's comments and the wee fella's hatred of high interest rates, coupled with the banks reduction in income from lower lending rates, how much longer will they stay above inflation...?
JF