Turkish C.Bank Keeps Interest Rate at Current Low

The Turkish Central Bank has decided to leave rates at the current low of 6.50 percent for overnight borrowing, and 9% for lending.

The bank's Monetary Policy Board issued a statement saying that gradual increase in domestic demand had been tempered by falling foreign demand, and that: "It is estimated that it would take some time for capacity utilization in the manufacturing sector to return back to pre-crisis levels," it said.

The board also said that, while unemployment fell recently, that joblessness is still too high, and also mentioned the shakiness in the wider global recovery.

The Central Bank doesn't expect what it called soaring inflation to come back down until the fourth quarter of this year.

This is good news for overseas property buyers according to UK based Turkish property agent Spot Blue. The firm wrote on its blog:

This is positive news for anyone considering buying a property in Turkey. Because Turkey made banking reforms in the 2001 crisis, liquidity has remained in the Turkish banking systems, and availability of mortgages largely unaffected by the crisis. Thus, foreigners who are able to obtain Turkish mortgages can currently do so very cheaply.

"But it is worth remembering that Turkish banks are reluctant to lend on properties that can not be seen and valued, thus borrowing tends to be on completed properties only," said Julian Walker, director of Spot Blue.

Spot Blue is currently marketing property in Turkey priced from £25,000.

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