Hakan Aran, the General Manager of Türkiye İş Bankası, projected that inflation and interest rates would decrease by half in 2025. Speaking at the International Resort Tourism Congress in Antalya, Aran recalled his earlier prediction that inflation would reach 42% by the end of 2024. He now forecasts inflation to decline to 22% and interest rates to drop to 25% by the end of 2025.
Inflation and Interest Rate Projections: Aran emphasized that the reduction in inflation and interest rates is a gradual process. He anticipates economic relief by the end of 2025, highlighting the importance of returning to a period when the policy rate was 19%.
Economic Challenges: Aran warned that companies, especially SMEs, would face difficulties managing cash flow in 2025. He identified the textile sector as one of the most affected, adding that large corporations delaying payments could harm the broader ecosystem. He also noted that 2025 would be a favorable year for mergers and acquisitions.
Housing Loans and Inflation Targets: Despite falling interest rates, Aran stated that housing loans would not become attractive in 2025. Regarding inflation, he expressed that while achieving single-digit inflation by 2026 is an ambitious goal, reaching around 12% would be an acceptable outcome.
Support for the Tourism Sector: İş Bankası plans to provide $2.6 billion in financing to the tourism sector during 2024-2025. Aran mentioned ongoing efforts to secure international funding and underscored the bank’s commitment to collaborating with the sector. AKTOB President Kaan Kavaloğlu called for extending the low-interest credit opportunities available to the agricultural sector to the tourism industry as well.
