Bank rates back to almost normal again

tarry67


Joined: 16/05/2008
Posts: 1053

Message Posted:
14/04/2011 15:28

Just been to Limassol bank and they have put the interest rate from 6% back up to 8% so things getting on track again.

keithr


Joined: 20/08/2008
Posts: 720

Message Posted:
14/04/2011 15:36

good that,but apart from keeping competitive with the others,there does not seem to be any economic reason why ???



No change in Turkish Central Bank rate I think ???

authentichoccie


Joined: 09/01/2008
Posts: 481

Message Posted:
14/04/2011 15:36

Yay! Does that mean I can retire???

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
14/04/2011 15:50

the trend is downward - i say 4-5% within 18 months............

keithr


Joined: 20/08/2008
Posts: 720

Message Posted:
14/04/2011 15:55

That depends on the Turkish Central Bank,if growth and inflation keep on as they are,they may have to put rates up to cool things down.

dearie


Joined: 08/03/2011
Posts: 142

Message Posted:
16/04/2011 08:03

agree with keithr - the turkish economy is expanding

AnthonySmith


Joined: 14/05/2009
Posts: 455

Message Posted:
16/04/2011 08:07

Is that why you are "Negative", Nick? :-D

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
16/04/2011 08:13

mess 6 - so interest rates will fall................

keithr


Joined: 20/08/2008
Posts: 720

Message Posted:
16/04/2011 13:35

Not necessarily.



If the economy grows too fast and overheats,interest rates could rise to cool things down as happens in other countries.

me-style


Joined: 03/08/2010
Posts: 150

Message Posted:
17/04/2011 02:35

The Turkish lira is a rather stable currency since they cut 6 digits, the rate can flucturate as when the value gets too high the government in Ankara normally intervene to push the value down (makes turkish products cheaper). Especially the textile industry is sensitive to a too strong TL as it decrease the competitiveness with China.



Second as the Turkish economy have stabilized so the road for the interest rates is down, the banks are also using the interest rates to attract clients and the banks that badly need money gives normally better rates. So you get a better rate with a risk. So check the rating of your bank!



I do not see any sign of the Turkish government is cooling off anything. I been there for 15 years and the Turkish government actually think and acts differently then what is understood among some brits that live in KKTC.