AUTO LOAN RATES HIT HIGHEST LEVELS IN 14 MONTHS

After somehow managing to remain below deposit interest rates over the last week of 2020, auto loan interest rate increased by nearly five points, vaulting above 20% last week, according to the Central Bank. Commercial loan rates exceeded 20% and consumer loan rates surpassed 23%. Interest rates for TRY deposits fell by 74 basis points to 16.22% in the week of January 8, compared to the previous week. The USD deposit interest rate fell by 14 basis points to 1.53% and the EUR deposit interest declined by two base points to 0.76%. Accordingly, deposit interest, unlike loan interest, dropped. The interest rate of TRY-based commercial loans increased by 130 basis points to 20.9% in the week of January 8, to the previous week. While the interest rate of TRY based housing loans stood at 18.61%, auto loan interest increased by 493 basis points to 20.37% and consumer loan interest rose by 21 basis points to 23.09%.