Are the days of high bank deposit interest about to end?

A new central bank governor Durmus Yilmaz was appointed today following long deliberations by the Turkish Government. He must bring down inflation to 5 percent by the end of this year to meet the target set out in Turkey’s International Monetary Fund-backed loan agreement. He will also face pressure from exporters and manufacturers for lower rates to weaken the currency which is making exports expensive.

Make the most of the high interest rates on your deposits now because lower inflation means bank interest rates will fall in line too. Something worth bearing in mind if you are relying on interest on your nest egg to supplement your living expenses.

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