The Turkish real sector has responded positively to the Central Bank of the Republic of Turkey’s (CBRT) unexpected interest rate cut, viewing it as a supportive step for trade, investment, and production.
The CBRT reduced its benchmark policy rate by 300 basis points, from 46% to 43%, exceeding market expectations. The move was welcomed by representatives of Turkey’s business and industrial communities, who emphasized the importance of cautious yet growth-oriented monetary policy.
ATO President Baran: “We aim for single-digit inflation and interest rates”
Gürsel Baran, Chairman of the Ankara Chamber of Commerce (ATO), said in a written statement that the CBRT’s decision is a hopeful signal for Turkey’s economic climate. “We value the Central Bank’s careful approach in easing monetary policy, while also maintaining a focus on financial and price stability. Our goal is to achieve single-digit figures in both inflation and interest rates,” Baran stated.
Baran added that the rate cut could stimulate the trade, investment, and production environment, stressing the importance of a balanced monetary strategy that supports growth.
TİM President Gültepe: “The cut is insufficient, but still positive”
Mustafa Gültepe, President of the Turkish Exporters Assembly (TİM), also issued a statement following the announcement, acknowledging the move as positive, though not entirely sufficient.
“The availability of long-term loans under favorable conditions is critical,” Gültepe said. “If realized, this would provide much-needed relief to our industrialists, especially during these challenging times.”
İTO President Avdagiç: “Cut aligns with expectations, credit access is key”
Istanbul Chamber of Commerce (İTO) President Şekib Avdagiç remarked that the 300 basis point cut aligns with the expectations of the business community. He emphasized, however, that the true value of the rate cut will emerge only if credit channels—particularly those aimed at SMEs—are effectively opened.
“We believe we will leave behind the damaging effects of high interest rates, which we have been feeling deeply,” Avdagiç noted. “Falling interest rates will play a vital role in restoring the competitiveness of producers and exporters, while also helping strengthen their capital structures.”
Avdagiç made these remarks in a written statement following the CBRT’s decision to reduce the one-week repo auction rate to 43%.
Source: Bloomberght/ Prepared by: İlayda Gök