ITO President Avdagiç Calls on Banks for Loan Interest Rate Cuts
Istanbul Chamber of Commerce President Şekib Avdagiç stated that they want the Central Bank's interest rate cut to be reflected in commercial loans rapidly.
Istanbul Chamber of Commerce President Şekib Avdagiç stated that they expect the statements regarding banks lowering their loan interest rates in parallel with the Central Bank's 300 basis point cut to be realized rapidly, and demanded that this reduction be widely reflected in commercial loans.
Sub-Breakdowns of Growth Data
Istanbul Chamber of Commerce President Şekib Avdagiç stated that they are focusing not on the rate of the 2.3 percent growth in the second quarter, but on which sectors it originated from.
Recovery in the Industrial Sector
Stating that the sub-breakdowns in the second quarter were promising, Avdagiç emphasized that the industrial sector, which contracted by 0.8 percent in the first quarter, grew by 2.4 percent in the second quarter and moved into positive territory.
Investment Appetite and Construction Sector
Reminding that the construction sector contracted by 1.9 percent, Avdagiç noted that there is a noticeable slowdown in investment appetite and that investments increased by only 0.6 percent in the second quarter.
Pressure of Costs on the Real Sector
Stating that the recovery of industry and the closing of the loss in exports are promising, Avdagiç expressed that this picture clearly reveals the pressure of costs on the real sector.
Expectation of Interest Rate Cut Reflection on Loans
Avdagiç conveyed that they expect the statements that banks will lower their loan interest rates this week in parallel with the Central Bank's 300 basis point cut to be swiftly implemented.
Access to Finance and Employment Relationship
He stated that facilitating production- and export-oriented investments' access to finance is the most critical step that will turn today's growth figures into tomorrow's employment.
Expectation for Exchange Rate-Inflation Gap
Desiring the reduction to be widely reflected across the entire banking sector, Avdagiç added that the gap between exchange rates and inflation should also be brought back to reasonable levels.