
Business associations have welcomed the Central Bank’s decision to further lower its policy rate, saying this move gives a boost to their morale.
In the past two months, the bank delivered a cumulative 500 basis points cut, slashing the one-week repo rate to 45 percent.
The Central Bank’s decision to continue the interest rate cut further increased the motivation of the business circles, said Mahmut Aşmalı, president of the Independent Industrialists and Businessmen’s Association (MÜSİAD).
“The impacts from the negative developments in 2024, when investments were affected and turnover declined in real terms, will gradually diminish in 2025,when we believe that normalization in monetary policy will continue,” Aşmalı said of the latest rate move.
The financing costs of the real sector are being reduced gradually in a way that will not harm the downward trend in inflation, commented Şekib Avdagiç, president of the Istanbul Chamber of Commerce (İTO).
“We find it important that 2025 starts with the decisions that the business world needs. Our main expectation is that these reductions will be reflected on commercial loan rates in a rapid fashion,” said Avdagiç.
Interest rate cuts are important for exporters to access financing at affordable cost, according to Mustafa Gültepe, president of the Türkiye Exporters’ Assembly (TİM).
“We welcome these steps as every reduction in the policy rate will be reflected in a reduction in rediscount credits,” Gültepe said.
Source: hurriyetdailynews