Turkish banks hike rates

Rising rates: A money changer holding the lira and US dollar banknotes in Ankara. Rates on deposits jumped to more than 20%, from 17% to 18% a week ago. — Reuters

ISTANBUL: Turkish banks reacted to the government’s new lira-defence scheme by jacking up loan rates in a race to attract lira deposits, in what could be a surprise for borrowers expecting cheaper credit, according to sources.Rates on deposits jumped to more than 20%, from 17% to 18% a week ago, while rising funding costs pushed small and medium entreprises loan rates to more than 30%.

These rates had been rising in weeks past but that accelerated this week, bankers said, requesting anonymity.