Business leaders welcome Central Bank’s rate cut

ISTANBUL

Türkiye's leading business chambers hailed the Central Bank’s 250 basis point rate cut to 40.5 percent, saying the move — deeper than markets had anticipated — could bolster production, exports and credit access if swiftly reflected in lending conditions.

Istanbul Chamber of Commerce (İTO) Chairman Şekib Avdagiç said they considered it significant that the Central Bank’s rate-cut cycle continued in parallel with the decline in inflation.

“Our main expectation is for the rate-cut trend to continue. Most importantly, these cuts should be quickly reflected in lending rates and credit limits should be selectively opened for exports,” he stated. Avdagiç added that reflecting tight monetary policy into credit channels in a way that does not constrain production and exports would make the ongoing inflation program more successful.

Ankara Chamber of Commerce (ATO) Chairman Gürsel Baran called the Central Bank’s decision an important step toward strengthening production, investment and export capacity and easing the burden on businesses.

“As the business community, without compromising on sustainable growth or the goal of single-digit inflation, we expect these cuts to continue. Banks should take this decision into account and reflect it as access to credit under favorable conditions for our SMEs,” Baran said.

Ankara Chamber of Industry (ASO) Chairman Seyit Ardıç also expressed hope that cuts would continue as long as conditions allow.

He stressed that the real sector expects rate cuts to be swiftly reflected in commercial loan rates. “Especially our SMEs and industrialists operating in traditional sectors are going through a period when they most need working capital and investment loans,” Ardıç said.