Abdurrahman Kaan, President of the Independent Industrialists and Businessmen Association (MÜSİAD), made a written assessment regarding the interest rate cut decision announced by the Central Bank of the Republic of Türkiye.
Kaan stated the following in his remarks:
Following the decisions taken by the Central Bank in July and September, the expectation of the markets was already that interest rate cuts would continue. In this context, this 250 basis point cut, which the Central Bank made in a manner consistent with market expectations, has pleased us greatly as representatives of the business world.
At the same time, we believe that the Central Bank should continue the interest rate cut process in 2020 as well. For among the G20 countries, where the average interest rate is %6, we are in the position of the country with the highest interest rate after Argentina.
We also hope that this decision will be reflected in market interest rates rapidly, and we expect all banks, without making any distinction between public and private, to lend an ear to market expectations and make moves that will ease the hand of the industrialist.
The %22.8 decrease in investments had been a factor in the %1.5 contraction seen in the economy in the second quarter of the year. With the decline observed in interest rates, investments will regain pace, and in addition domestic demand, which has been decreasing for the last two quarters, will also turn positive. In this direction, we can state that the positive growth journey of the Turkish economy will begin anew in the coming period.