Following the volatility in the markets, the economic management has put a new set of measures on the agenda. It was stated that a reduction in the tax applied to deposits is being considered within this scope. Additionally, deposit interest rates in banks have surpassed the policy rate of 42.5%.

The withholding tax on deposits and funds was increased by 5 points in February. After the recent developments, a plan is in place to decrease the tax once again. According to Bloomberg agency, the economic management has brought a new set of measures to the agenda to combat market fluctuations. The initial step involves evaluating the reduction of the withholding tax rate on deposits and funds. This regulation aims to support the Turkish Lira. The withholding tax on time deposits up to 6 months had been raised from 10% to 15% on February 1. The deduction in funds was also increased by the same rate.

DEPOSIT INTEREST ABOVE THE POLICY RATE

Meanwhile, the fluctuation in deposit interest rates did not go unnoticed. With expectations rising that the Central Bank would keep interest rates steady, deposit interest rates reached 45%. Short-term deposits have once again risen to the range of 45-47%. Last week, the interest rate on 32-day time deposits was applied at 42.5%.

As a result, deposit interest rates have surpassed the policy rate of 42.5%.