Economic management takes steps toward selective tightening and financing

The economic management avoids a general interest rate cut, continuing its tight monetary policy on a selective course. Accordingly, while consumer loan and credit card conditions are kept strict, credit limits supporting production and exports are being increased.

Transition to Selective Tightening Policy

Instead of a general interest rate cut raised by the business world, the economic management is gradually shifting monetary policy to a different dimension. The current strategy is implemented within the framework of selective tightening that prioritizes production and export rather than consumption-led growth.

Credit Limits and Financing Supports

Within the scope of the steps taken by the Economic Coordination Council, the Investment Commitment Advance Loan limit was increased to 750 billion liras. In addition, the daily limit for rediscount credits was raised to 5 billion liras, facilitating manufacturers' access to financing.

Consumer Loans and Strict Conditions

While financing opportunities for production and exports are increased, high interest rates and strict financing conditions on individual consumer loans and credit cards continue to be maintained as they are.

Central Bank and Budget Discipline

The Central Bank withdraws excess liquidity that may form in the market by using various tools, preventing an expansionary monetary policy. It is aimed to keep budget expenditures under control and to resolutely maintain fiscal discipline.

Medium-Term Program Expectation

The inflation and growth targets to be included in the Medium-Term Program, expected to be shared with the public in early September, are anticipated to provide important clues about the future of this economic policy.