After The Central Bank Of The Turkish Republic ( TCMB ) decreased the interest rates, all eyes are on finance charges, now. While this change, the Central Bank has made, making ‘housing industry’ happy enough, It also means ‘hope’ for those who are in wish of buying property. What about the continuity of decrease in the interest rates?
Securities Analyst Aysun Göksü states: “ The costs of banks increased with the contractionary monetary policy which the Central Bank carrying out lately. This cost is most probably being reflected on their own interest rates.”. While stating that the forthcoming decisions about monetary policy of the Central Bank are going to be related to inflation outlook, Göksü also says: “ The Central Bank, pursuing a simplification policy by restricting the interest rate corridor after receded inflation of February, created an expectation about the possible permanency of reduction of interest after decreasing inflation figures of March. This also greaten the expection in the direction of decrease in loan rates.”
High Interest Decreses the Sales on Credit
By pointing out the up to date statistics of sales of property which Turkish Statistical Institute has published, Göksü says: “ The number of house sales has increased up to 7% compared to previous year and has reached 101.703.” Istanbul is in the first place with the highest rate, of course.
The rates showed an increase above 20 % compared to last month. 30% of this is sales on credit. It looks like the speed of sale on credit has decreased because of the contractionary monetary policy which The Central Banks has carried out.
Increase in the value of foreign currency has also increased the costs. Göksu also states that the increase especially in value of Euro and Dollar, whets real estate investors’ who have foreign exchange savings appetite. But she also states that input costs are also in foreign currency.