Continuation of rate-cut cycle positive step for business world: İTO head
ISTANBUL
Istanbul Chamber of Commerce (İTO) Chairman Şekib Avdagiç has stated that the Turkish business community welcomed the Central Bank’s decision to lower its policy rate by 100 basis points to 39.5 percent, but stressed that accompanying credit regulations and improved access to SME financing are crucial for the move to have a positive impact on commercial life.
Avdagiç underlined that the continuation of the rate-cut cycle provides financial predictability for businesses. “Especially for SMEs, curbing rising financing costs and ensuring not only lower interest rates but also greater access to credit will ease market conditions. The balance to be established here is of great importance,” he noted.
He also cautioned against developments that could trigger renewed inflationary pressures, emphasizing that the uninterrupted continuation of the downward trend in annual inflation is crucial.
Istanbul Commodity Exchange (İSTİB) Chairman Ali Kopuz also welcomed the policy rate falling below “the psychological threshold of 40 percent.”
“Given the stickiness in some inflation components, the Central Bank could only make a cautious cut, and it has used that space,” he said.
Kopuz added that monetary policy steps, when supported by fiscal discipline and structural reforms, will help build a more stable and balanced economic structure in line with the targets of Türkiye’s medium-term program (OVP).
