Turkey’s state banks are expected to cut rates by around 200 basis points on Monday, following last week’s unexpectedly rate cut by the central bank, sources told Reuters.
The biggest three public Banks, Ziraat, Halk and Vakif are expected to cut rates on corporate, individual, mortgage and loans.
Last week’s rate cut to 16% shocked markets and was twice as estimated
The cut sent the lira to a record low and boosted yields on the 10-year government bonds to 20.53%.
Usually a sharp drop in rates could help businesses, yet, it raises inflation, pushing lira toward depreciation.