Yesterday, the Central Bank decreased half point from interest corridor’s top strap which helped the housing credit interests to go down.
The Central Bank’s half point discount from interest corridor’s top strap was founded low by businessmen. Still this discount helped the housing credit interests to go down under %1. Emlak Konut Real Estate Investment Trust General Manager Murat Kurum said that he expects housing credit interest rates will decrease to under %1 in close run. Joining the Europe Houses Başakşehir Project’s introduction Kurum, answered the questions in the meeting which was before the meeting holded by Monetary Policy Committee under the chairmanship of Murat Çetinkaya. Kurum said that they expect interest discount if there is an interest discount decision made in MPC meeting as a response to question related to what changes there can be about interest rates. Kurum: “After this interest falls, the market will already bring the interest down under %1. This discount may continue to go down or increase.”
“WE ALREADY BRING THE INTEREST DOWN”
Kurum told that in order not to make people wait in expectation we should behave sensitively. He said he thinks that housing credit interest’s rates will go down %1 in the close run. As Emlak Housing we have brought these interests down. That is, whether the interest will go down or stand still is not so important. Kurum emphasized that Turkey is a developing country and it needs investments to develop. He point out the importance of low interest rates for new investments.
“WE SHOULD PAVE THE WAY FOR INVESTMENTS”
Kurum: “In order to invest people need to get into debt and they have to pay these debts.” The interests should be low according to payment possibility. We should invest more than developed countries in order to reach our 2023 goals. In order to do this, we should protect small and medium managements. “We must pave the way for investments with low interests” he said.
THE PSYCHOLOGICAL BORDER AFFECTS HOUSING SELLING
For a while, housing credit interests go on at a high rate as %1.20-1.25. The high interest causes housing purchase to be postponed and sales to go down. According to representatives of fast estate, %1 interest rate creates psychological border. Housing sales increase when the interests go down under this rate. In the last term, the slowing down of sales is remarkable in labelled new housing projects sales.
MINISTER OF ECONOMICS MUSTAFA ELİTAŞ:
The market is close to its expectation but not exciting
The Central Bank’s half point discount from interest corridor’s top strap did not make Mustafa Elitaş Minister of Economics happy. Elitaş: “there is a rate that is close to market expectations but I am not in the opinion that there is a pleasing discount. Mustafa Elitaş said that the interest rate should be somewhere to trigger investors’ desire.
ICC PRESIDENT İBRAHİM ÇAĞLAR:
The discount affected like fresh air and now it is banks’ turn
Istanbul Chamber of Commerce President İbrahim Çağlar said that The central bank’s %50 discount refreshes the reel sector. Çağlar: “not it is banks’ turn. We hope this discount will work on managements, sme’s bank credit debts, investment and consumer loan. He emphasized that the mutual collaboration won in the meeting hold under the chairmanship of Çetinkaya. He said new starts are always hopeful. We hope the process continues with quick interest discounts.
HOW DID THE BUSINESS WORLD COMMENT ON THE DECISION?
ISTANBUL CONFECTION EXPORTER ASSOCIATION PRESIDENT Hikmet Tanrıverdi: “Monetary Policy committee’s 50 basis points discount from interest corridor’s top strap did not meet our expectations. As exporters we expected 100 basis points at the top strap.”
-Ankara Chamber of Industry Nurettin Özdebir: “The Central Bank made a decision of a interest that is not very annoying to market as the conjuncture is favourable.”
Turkey Cloathing Manufacturers Leagude President Şeref Fayat: The half point discount was found conceivable and made a positive effect.
-Turkey Confederation of Tradesmen and Craftsmen General Manager Bendevi Palandöken: “We expected that the interests would go down more. The new president gave some hope but this is not sufficient. The banks should discount on credit interests as well.”