✔ Those who think that other interest rates have decreased with the reduction in the interest rate of the Central Bank; a chart and graph to cut out and keep!
✔ The data belongs to the Central Bank, that is, the Central Bank says: “After my interest rate was lowered, other rates increased.”
The subject makes no difference; Prejudice is a bad habit. Did man become like this; it also closes to learning and being informed.
It’s like he’s afraid… What if his favorite prejudice is broken with what he’s heard and learned! There is such a concern.
The government started to lower the policy rate of the Central Bank in September last year. (I prefer this expression especially since the Central Bank does not make the decision on the interest rate.) Last year, a reduction of 5 points was made in four meetings. The interest rate, which was kept constant for the first seven months this year, was lowered by 1 percentage point last week after a long break, and was determined as 13 percent.
Today, I will not dwell on whether these choices are correct. Depending on where you look and what you aim for, you may well find these decisions correct. As a matter of fact, the government sees that it continues this policy. As I wrote yesterday, it doesn’t make much sense to interpret decisions one by one anymore. There is only one goal; win the election. AKP also thinks that it can win the election with this policy. The choice is theirs!
Another aspect of this interest rate cut that I want to focus on today…
When he mentions that the reduction of the Central Bank’s interest rates from time to time creates a series of undesirable situations in the economy, here are the voices of objection from those who cannot act objectively and are completely closed to learning:
“Would it be better if the interest rates were higher, even if the interest rate of the Central Bank was not lowered? Here’s a nice interest rate drop.
I ask those who say this; “Which rate fell” There is no information that I can get a healthy answer.
“It’s down, it’s all down!”
“Which interest rate fell to what?”
After a while, I hear my own voice echoing. Because the other side has nothing to say!
All interest rates increased
With the reduction in the Central Bank’s interest rate, no interest rate fell, on the contrary, there were increases.
Here is the course of the situation from the situation just before September of last year, when the interest rate cut was started, to the present in a tabular form in the article.
Is there a falling interest?
Although the deposit rate regressed a little for a while, it still remained above the policy rate. However, we are in no condition to applaud the fact that the deposit interest rate has fallen so low. You know, there’s a strange concept they’re trying to create or create? “liraization” In fact, those who save in TL are those who have remained loyal to the concept of liraization from the very beginning. There is nothing to be happy about punishing these people.
The increase in loan interest rates is much more pronounced. Aren’t the decisions taken last week aimed at preventing commercial loan interests from increasing too much?
Cut and save this painting!
The source of the data forming the table and graph in the article is the Central Bank. So these are official data.
The Central Bank publishes the interest rates showing the average of all banks in deposits and loans every week.
In other words, I have compiled these rates, neither the work of a political party, nor the data of a university. These are official data. So cut and save this table and “When the interest rate of the Central Bank was lowered, how nice it was, other interest rates also fell” get rid of prejudice!
WHY DOES THE TREASURY HAVE INTEREST?
This operation, aimed at reducing the Central Bank’s interest rate, had its main impact on the Treasury’s borrowing. While the Treasury used to carry out its borrowing with interest rates that could be considered reasonable before, the balance deteriorated with the wrong button fastening.
However, taking and evaluating the Treasury’s borrowing interest alone would lead us to the wrong conclusion. Because the Treasury does not only borrow in TL. There are also foreign exchange and CPI-indexed borrowings, and moreover, the share of such borrowings in the total has increased recently.
Therefore, it would not be correct to make an assessment based on the Treasury’s borrowing in TL only.
Let’s leave it to another article how the cut in the Central Bank’s interest rate affects the Treasury.
DO NOT ASK ABOUT THESE INTEREST ONLY FOOT, EXCHANGE AND INFLATION!
Not so; Let’s assume that when the Central Bank interest rate was lowered, all other interest rates also decreased. For example!
So is there an improvement in the economy?
Second question; What is the measure of the improvement in the economy?
Did inflation decrease because the interest rate was lowered? what a journey, record after record is being broken.
Did the Turkish currency gain value because the interest was lowered? a national currency seen anywhere in the world gains in value when the interest rate is reduced.
Foreign currency up, inflation up, and occasionally (as my late mother put it) inventions! Let’s see what the next invention will be?