The Central Bank of the Republic of Turkiye (CBRT) took additional tightening steps to support the tight monetary policy stance.
The Central Bank of the Republic of Turkiye emphasized that it has taken additional tightening steps to support the tight monetary policy stance.
The following statements were included in the written statement:
“Within the scope of the security facility based on credit growth; it has been decided that the monthly growth limit of 2.5% for TL commercial loans will be reduced to 2%, the monthly growth limit of 3% for consumer loans will be reduced to 2%, and the 2% limit will be maintained for vehicle loans.”
In order to increase the effectiveness of the application regarding credit growth limits, it was stated that, in addition to the security establishment, efforts to establish required reserves based on credit growth are continuing. It was also emphasized that additional steps were being taken to strengthen the monetary transmission mechanism.
Loans for earthquake zones will be exempt
The Central Bank underlined that export, investment, agriculture and tradesmen loans, as well as loans to public institutions and earthquake zones, will continue to be exempt from this limitation.
In the summary published regarding the meeting of the CBRT Monetary Policy Committee on February 22 the following was stated, “If a significant and permanent deterioration in the inflation outlook is anticipated, the monetary policy stance will be tightened. In case of developments other than those anticipated in loan growth and deposit interest, the monetary transmission mechanism will be supported.”
Source: Trthaber / Prepared by Irem Yildiz