The deceleration in commercial credit growth has reached noteworthy levels

As commercial loan interest rates continue to rise rapidly, the deceleration in growth rate has reached remarkable levels.

According to calculations based on the data from the Banking Regulation and Supervision Agency (BDDK), the 13-week, annualized, and inflation-adjusted growth in commercial loans stood at 8.1% as of the week of July 7.

During the period of monetary easing, the growth rate in commercial loans had reached as high as 56.1%. In the pre-election period, the growth rate was recorded at 45.1%.

According to the data from the Central Bank of the Republic of Turkey (CBRT), average interest rates on commercial loans reached 24.5% in the week of July 7.

In February of this year, average commercial loan interest rates had dropped to around 13.2%.

A similar trend has occurred in consumer loans as well. Average interest rates on consumer loans rose to 48% during the same period.

While an upward trend in loan interest rates is observed, there is also a continued decline in Turkish lira deposit interest rates. According to CBRT data, average interest rates on 1-3 month term deposits decreased to 37.8%.

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