After interest rate decision by Central Bank, banks expected to start their interest rates on TL deposits from 40 percent

The Central Bank’s Monetary Policy Committee (MPC) had raised the interest rate by 750 basis points to 25 percent, most recently. Before announcing the interest rate, the Central Bank had made a new decision to facilitate the conversion of TL deposits from abroad.

As a result of these decisions, the banking sector is required to achieve a 50 percent conversion target from TL-denominated foreign currency accounts and a 5 percent conversion target from foreign currency-denominated foreign currency accounts to TL time deposits. The calculation period for these targets begins today. Banks that fail to achieve these targets will face securities purchases as a consequence.

Banking sector sources, providing information to media, expect the real movement in TL deposit interest rates, which started showing slight movement last week, to occur this week. It is anticipated that the interest rates on TL time deposits with maturities of up to three months, which have exceeded 30 percent, will rise to the levels of 35-40 percent.