Credit growth expected to stabilize: Central Bank

ANKARA

Credit growth rates are expected to stabilize following the policy rate decision taken in March and the macroprudential measures, according to the Central Bank.

Total loan growth has accelerated since the bank’s rate-setting meeting in February, the bank said in the summary of the March Monetary Policy Committee (MPC) meeting, released on March 28.

The four-week average growth rate of retail loans has increased since the previous MPC meeting period and stood at 4.12 percent, according to the bank.

The four-week average growth rates of general-purpose loans and personal credit cards were at 4.59 percent and 5.34 percent, respectively, said the bank.

The four-week average growth rate of retail loans has grown since the February MPC meeting and stood at 4.12 percent.

The bank stressed that financial conditions were tightened, and monetary policy transmission was reinforced with the measures taken in March.

As a result of steps taken towards tightening financial conditions, Turkish Lira commercial loan rates and general-purpose loan rates -excluding overdraft accounts- increased by 6.27 percentage points and 15.3 percentage points to 59.6 percent and 76 percent, respectively, since the previous MPC meeting, said the bank.

Housing loan rates and vehicle loan rates, which posted a limited increase in the same period, climbed to 42.7 percent and 43.1 percent, respectively, as of March 15, the bank added.

The bank, however, concluded that credit growth will stabilize following the policy rate decision.

The bank increased its policy rate, the one-week repo auction rate, from 45 percent to 50 percent at the MPC meeting on March 21.