Call from TESK: Credit card interest rates should be reduced

Following the Central Bank's (CBRT) interest rate decision, TESK Chairman Bendevi Palandöken said, "It is essential that banks reduce their loan interest rates and expenses as soon as possible."

Photo: AA

The Central Bank lowered the policy rate by 250 basis points to 40.5 percent.

According to Bloomberg HT , Palandöken, President of the Confederation of Turkish Tradesmen and Craftsmen (TESK), said the following regarding the decision:

* Interest rates have fallen from 43 to 40.50. This represents a 250 basis point reduction. This must be reflected in the public, tradespeople, industrialists, and merchants so that markets can convey this positive perception to citizens. However, interest rates on loans used by tradespeople in the marketplace, markets, and industry remain constant.

* Banks must immediately comply with the Central Bank's commitment to lower interest rates to stimulate the market and realize expectations of lower inflation. Banks must pass this interest rate reduction on to industrialists, tradespeople, and even citizens, including interest rates on credit cards. Otherwise, the Central Bank's monetary policies will take time to reflect on citizens and tradespeople. From now on, both citizens and tradespeople expect both inflation to fall and measures to reduce the prices of commodities purchased in the marketplace.