Mathematical finance

Foreign fund inflows to Türkiye are likely to gather momentum not after but before the local elections, says Hakan Aran, the general manager of İşbank, one of Türkiye's largest private banks.

The consensus is that foreign investors' interest in Türkiye usually increases before elections, he said.

Rising interest rates have put loan takers, from consumers to governments, in a bind, with many having taken out loans at interbank rates in the red, as they were for eight successive years in the EU.

Successive rounds of rate increases by central banks have unavoidably affected commercial loan rates.

The spread between interest rates on loans and deposits is decreasing significantly, mainly after the recent increases in interest rates on new term deposits by Greek banks, according to the Hellenic Bank Association (HBA).

This is a good period for decisions on savings, as the yields time deposits offer today range between 1%-2%, depending on the duration and amount. They have incorporated the rise in interest rates and therefore no more aggressive moves are expected in the near future.

The Public Employment Agency (DYPA)'s Spiti Mou (My Home) program is set to launch on Monday with the participation of all systemic banks. The program foresees 5,000 loans being taken out by young people and couples aged 25 to 39, with the interest rate limited to a quarter of the normal market rate. If a couple has three or more children, the interest rate will be zero.

BNB increased the main interest rate in February to 1.82. In January it was 1.42%.

The central bank started increasing the main interest rate since October last year, when it went from 0 percent to 0.49 percent.

What is the Bank of Greece's biggest concern? That reaching investment grade has drifted further away and that in an international environment full of uncertainties, there is only one certainty: That the time of abundant, cheap money has given way to an era of high interest rates and limited liquidity.

In a widely expected move, the Central Bank decided to keep its policy rate, the one-week repo rate, unchanged at 14 percent on June 23. 

For the last time, the bank cut the key rate by 100 basis points from 15 percent in December last year.

Turkish, Economy, Interest Rates,

Federal Reserve Chair Jerome Powell has pledged to do whatever it takes to curb inflation, now raging at a four-decade high and defying the Fed's efforts so far to tame it.

Increasingly, it seems, doing so might require the one painful thing the Fed has sought to avoid: A recession.

"Do not worry Bulgarians, inflation will not stay this way, it will get worse"