The three banking sources told Reuters that three of the major state banks, Halkbank, Waqf Bank and Ziraat Bank, are expected to cut interest on corporate and individual loans, mortgages and other loans.
On Friday, one bank sent an email to its employees informing them of the bank’s intention to reduce the cost of borrowing by 200 basis points. Another banking source said that government banks will cut interest rates on Monday “by a large percentage comparable to the 200 basis points that the central bank has cut from the repo rate.”
Ziraat Bank said it had no comment, Halkbank declined to comment, and a bank that did not immediately respond to a request for comment.
The Turkish state wealth fund also did not immediately respond, and the fund fully owns Ziraat Bank, a 75 percent stake in Halkbank and a 36 percent stake in Waqf Bank.
The central bank declined to comment on the state banks’ plans.
The lira had already reached record low levels last week after the central bank announced a cut in the interest rate by 200 basis points, despite the increase in inflation, which constituted a shocking move that economists and opposition representatives described as reckless.
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