Business leaders cheer rate cut as a boost for growth

ISTANBUL

Leading figures from Türkiye’s business world have welcomed the Central Bank’s decision to slash the policy rate, viewing it as a step toward easing financial burdens and revitalizing economic activity.

The bank on July 24 delivered a more-than-expected 300 basis points cut, lowering the one-week repo auction rate from 43 percent.

İstanbul Chamber of Commerce (İTO) President Şekib Avdagiç said the decision aligns with business expectations and will help open credit channels, especially for small and medium-sized enterprises (SMEs).

He emphasized that lower financing costs are essential for producers and exporters to remain competitive.

Mustafa Gültepe, president of the Turkish Exporters Assembly (TİM), called the cut “positive but insufficient,” urging deeper and faster reductions to support investment and production. He stressed the need for accessible, long-term financing to sustain industrial momentum.

DEİK President Nail Olpak described the move as “a confidence booster.” While acknowledging that interest rates are still high, he noted that the downward trend could positively influence market expectations. He also emphasized the importance of aligning market rates with the Central Bank’s decisions.

Ankara Chamber of Commerce (ATO) Chairman Gürsel Baran said the cut would improve the climate for trade, investment, and production. He called for additional measures to enhance financing access for SMEs and highlighted the importance of maintaining progress in the fight against inflation.

Economists suggested that future rate cuts will likely depend on incoming data and inflation trends.

Haluk Bürümcekçi, a financial analyst at AA Finans, projected that the policy rate could fall to 36 percent by year-end. He interpreted the Central Bank’s messaging as signaling a meeting-by-meeting approach to future decisions.

Batuhan Özşahin, General Manager of Ata Portfolio, expects further rate reductions in September and December.

Marek Drimal, strategist at Societe Generale for Central and Eastern Europe, the Middle East, and Africa, suggested that future cuts may come faster than previously expected.