Another blow to consumers: Restrictions to credit cards on the way

While the Central Bank has not mentioned anything about the year-end inflation forecast of 36 percent, the new President Fatih Karahan has signaled restrictions on credit cards. Karahan said, “We are working on regulations regarding cards.”

The Central Bank announced its first inflation report of the new period. Fatih Karahan, the new President of the Central Bank, who faced the press for the first time after his appointment, announced that they did not change their inflation forecasts. Accordingly, the 2024 inflation forecast remained at 36 percent, and the 2025 forecast at 14 percent. Giving the message that the tightness level in monetary policy will continue, Karahan stated that after inflation peaks at 73 percent in May, a disinflation period will begin and gave important clues about the steps to be taken in the new period.

Karahan, who signaled restrictions on credit card spending, said, “There was an increase in credit card spending in December. We noted this, we are aware of it. It is not yet clear whether this is temporary or not. An increase in the minimum wage was expected. Therefore, some expenses may have been brought forward, but regardless of this, we believe that regulations need to be made on credit cards. We have some ideas about this, and our work is ongoing. When we reach a certain stage, we will share it with the public.”

“NO TOLERANCE FOR EXCESS USAGE”

Saying, “We will not allow excesses in credit growth,” Karahan said the following: “We are determined to maintain the necessary monetary tightness until inflation falls to levels consistent with our target. We will absolutely not allow any deterioration in the inflation outlook. We will maintain the policy stance until permanent price stability is achieved and lead the economy to permanent price stability.”