The spread between the Treasury bond yield and the policy rate increased

The 10-year bond yield has increased by 730 basis points from 17.35 percent to 24.65 percent since September 23, when the Central Bank of the Republic of Turkey (CBRT) started to decrease interest rates. While the maturity period with the highest interest rate increase since September 23 was 6 years, the interest rates of 1- and 2-year bonds increased relatively less. In this period, the interest rate of 5-year bond increased by 716 basis points, while the interest rate of 7-year bond increased by 765 basis points. According to the Central Bank of the Republic of Turkey (CBRT) data, the average commercial loan interest rate was recorded as 20.91 percent in the week of 17 December. Thus, the highest level in commercial loan rates was seen since October 8. During the week of September 23, when the Central Bank cut the policy rate to 18 percent, commercial loan rates were at 19.50 percent. Looking at other interest items, the housing loan interest rate increased by 0.1 point to 17.3 percent in the week of 17 December; The consumer loan interest rate was 23.5 percent with an increase of 0.3 points, and the general purpose loan interest rate was 25.2 percent with a decrease of 0.1 points.