Posted on 21 August 2009
Turkey, which had already cut its key interest rate by more than any G20 country has reduced the rate by a further half a percentage point to just 7.75% earlier this week. Turkey has now reduced the over-night borrowing rate by 9% in the last 12 months.
The reductions do appear to be working; inflation is slowing to levels that will be accepted for entry into the EU. And what’s more Turkey certainly has room to manoeuvre when it comes to interest rates; Turkey’s main banks all revealed their profits have grown massively in the last fiscal year. So it would not be a total shock if this is followed by further interest rate cuts in the future.
Now is most certainly a good time to buy Turkey property, for lifestyle buyers in particular, because they tend to favour property that is already completed, which is easiest to obtain a Turkish mortgage on.
British lifestyle buyers are in a particularly favourable position vis-a-vis a Turkish property purchase, with Turkish property still almost 9% cheaper to British buyers than it was in April, because of changes in the exchange rate.
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