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Will interest rates on loans fall?
#1
People who are considering taking out loans for various requirements have recently entered into the expectation that loan interest rates will fall. The main reason for this expectation is that the Monetary Policy Board, which met after the change of the Central Bank governor in recent months, has withdrawn interest rates one step further at each meeting. In addition, the fact that politicians are responding to calls for interest rate cuts raises expectations higher. For this reason, people prefer to wait to withdraw credit. Will interest rates on loans fall? How Much Does it fall if it falls? What should the consumer do? The answer to these questions is among those who are constantly changing as a result of events that occur and develop.

Global economy, England and US relations and interest rates

The uncertainties and social crises experienced in Turkey and the United States in the past year have been the reasons that have increased the amount of interest in England. As a result of the measures taken by the government, interest rates gradually fell to lower levels. Interest rates have fallen, causing a spring in the sectors and interest rates to fall quickly. But it would not be quite right to show the political situation as the only factor affecting loan interest rates. Therefore, it can be interpreted that the credit will fall or rise, taking into account all its aspects.

Will Loan Interest Rates Fall?

Until the 2019 local elections, there were big upheavals on the agenda. This, in turn, led to an increase in the amount of interest on the loan every day. After the elections, this picture turned to the contrary and immediately began to show a positive effect. First, the stock market began to rise. However, there were declines in the dollar, gold and interest rates. All this mobility has led to our direction being turned to loan interest. As far as we know from Christmas loan deals in December, there has been a significant drop in interest rates. According to experts, this decline will continue after the first quarter of 2020.

Credit Interest Of Banks

Credit interest rates include a policy determined by each bank. But Loan Interest Amounts are asked to be close to each other. Because the race between banks makes it necessary. It is not preferable in terms of a loan person who is quite high by looking at the amount of interest on a loan. Loans that always have the least amount of interest are preferred first. In a competitive atmosphere, a decrease in the amount of interest on a bank's loan can lead to a decrease in other banks, following the balance sheet policy. For this reason, interest rate cuts are primarily made by state banks, and private banks are expected to follow them. Given some interest rate gaps, it also raises questions about what might be the reason for this. For example, the lowest interest rate for car loan purchases is 1.15 at Iş Bank, and the highest rate is 2.72 at Aktifbank. It is also not clear why the big difference is caused. As a matter of fact, banks are implementing the decisions they have taken within their own bodies.

Market Revives, Interest Rates Fall

One of the reasons that affect the decrease in loan interest amounts in Turkey is the revival of the market, the inflow of hot money to the country, and the increase of production. But events in foreign countries, domestic political events and other events show that the decrease in loan interest amounts in Turkey will continue for some time. According to data from people specializing in Economics, a decrease in loan interest rates will continue with the end of the winter season. But this fall will not be so sudden, but slowly and constantly. The markets and all the other conditions are not yet ripe for a significant fall at the moment.

Falling Interest Rates On Housing Purchases
As is known, mortgage interest rates, which have been at very high levels in recent months, have fallen below 1 level after serious falls. As a result of events, this loan, which moves above the 2% level, is currently issued by Ziraat, Vakıfbank and Halk Bank, especially state banks, at a rate of 0.99. In this case, people have increased their search for housing. Despite falling interest rates, increases in house prices at the same rate are among the factors that continue to shrink the property sector.

Effect Of Foreign Currency On Interest Rates
Foreign exchange is a matter that directly affects interest rates in Turkey. As a matter of fact, the increases in the main Dollar, Euro and gold prices, which make up the exchange rates, cause the Turkish lira to depreciate and therefore increase interest rates. In the global economy, gold prices are shaping up at the dollar rate. Gold, which increases the price of an ounce with this formation, also means that the TL loses value. That's why interest rates are rising.

Deposit Interest Of Banks
One of the issues that has caused loan interest rates to rise is the interest rates on deposits that banks give to their investors. With the high rates here, individuals and legal entities who avoid investment can evaluate their money at the high interest rates given by banks to eliminate uncertainty. This is also a matter of close interest on loans. As a matter of fact, as interest rates on deposits increase, the rates of interest on loans also increase. This causes the economic market to shrink while stopping investment. In order to avoid this, the call for interest rates to be lowered to the banks is constantly repeated.

Economic experts are constantly talking about scenarios of possible events ive figures that will occur in the future. In addition, as a result of events that develop, expectations change while these scenarios are renewed. While the definition of the economy is in the pocket of the consumer, the considerations formed in numerical figures are those that affect credit interest rates in statistics such as country growth, inflation figures and unemployment.

Effect Of Unemployment On Credit Interest Rates
Unemployment and inflation can both be evaluated within a framework. It is the central bank's job to balance these two factors because they are inversely related. In some cases, it may be necessary to narrow the expanding credit market while performing this task. This contraction is also made possible by the increase in interest rates. Falling inflation and interest rates will also cause the unemployment rate to fall. In other words, unemployment, inflation are closely related to credit interest rates.

Effect Of Inflation On Loan Interest Rates
The rise in inflation figures is one of the reasons that has a bad effect on the economy. Here, the steps taken to reduce rising inflation bring some considerations. As the unemployment rate increases within the country, inflation is among those observed to fall. Along with this, inflation will fall, and turning this decline into an opportunity can be possible by cutting interest rates by the Central Bank.

Effect Of Interest Rate Increase On England
Possible interest rate increases mean a strengthening of the GBP. After that, it is expected that interest rates in the economic market will fall, followed by a decline in loan interest rates, as well as a revival of the economy. Recent inflation figures have fallen to single digits, causing interest rates to fall. Along with this decline, loan interest rates are also falling. Investors who know this opportunity, and people who need it, turn to products provided by banks. As in all countries, there may be structural problems in our economy. While these problems are overcome as a result of the steps taken, the biggest problem for us is that we are most dependent on the outside in the intake of energy.

It is not known whether interest rates on loans will fall. It would be wrong to predict this, to give a date. But the stock market, which has closed at a two-month high, shows that the economy is heading in the right direction. The stock market will be high rather than hot money inflows into the country from outside. This is one of the issues that is driving the economy in a positive direction.
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