According to bankers, new economic measures will increase all interest rates

Bankers noted that with the new steps taken by the economic management, interest rates might rise even higher. TL and foreign currency deposit rates and loan rates were rising across the banking sector after the depreciation of TL, which started at the end of April and approached 13 percent.

The economic management had taken steps aimed at encouraging TL assets last night and deterring foreign currency assets by allocating more TL-denominated provisions.

According to information provided by bankers, dollar-denominated deposit rates increased by 2 percentage points in two months to about 5 percent, while TL deposit rates rose by 3-5 percentage points to 20-23 percent.

On the corporate side, the cost of revolving loans, except for some areas determined by the government, rose to 40 percent in some banks. All loans have seen increases of 3-5 points in recent weeks.

‘Deposit interest rates tend to increase’

A banking source said: “Demand for the dollar is on an upward trend again due to the accelerating depreciation of the TL in recent weeks. The interest rates on dollar deposits of banks approached 5 percent. This was at 3 percent in March. Not only dollar deposit interest rates, but also TL loans and deposit interest rates are on the rise trend.”

The same banker continued: “All loans show increases of 3-5 percent. In some banks, interest rates on revolving commercial loans approached 40 percent. Deposit interest rates increased from 17-18 percent in the public sector to 20-23 percent.”