Turkish banks preparing to increase their loan rates

Turkish banks are preparing to raise commercial loan rates by 5–6 points, pushing them to around 50 percent, as new credit limits open on March 30. This increase is also expected to affect consumer loans, making borrowing more expensive for households. The financial impact of the war that began after the United States and Israeli strikes on Iran on Feb. 28 is becoming clearer, with rising oil prices and global inflation concerns reshaping monetary policy. Brent crude has settled above $100 per barrel, fueling expectations of tighter measures by central banks worldwide. The Central Bank of Türkiye has already lifted the effective policy rate to nearly 41 percent. Banking executives explain that the hikes aim to curb demand for foreign currency and protect reserves.