Continuity of interest rate cut would encourage sales of automotive positively in the domestic market, Hayri Erce, Coordinator General of Automotive Distributors’ Association
When continuity in interest rate cut goes on also consumer loans’ interest rates will decrease, this spurs the automotive sector positively, according to the statement of Hayri Erce, Coordinator General of Automotive Distributors’ Association (ODD). Hayri Erce said according to the growth outlook, Turkey would grow 3 percent despite last quarter figures have not been released, adding the figure was under both the growth potential and growth need of Turkey.
Touching oil prices which had been in a serious drop, Erce indicated Turkey which is addicted abroad in terms of energy, would be affected positive through this development. Commenting if decrease in oil prices would be permanent the contribution of it to Turkish economy would be also lasting more, Erce said, “Some constriction happened in current account deficit in 2014. If oil prices will remain in $40- 50 per barrel in 2015, setback in current account deficit will continue some. We predict it would be $40 billion or under $40 billion.”
ODD Coordinator Erce stated 3 important issues existed in terms of the economy and continued; “One of them is current account deficit, so that it has been affected positively. The second one is inflation. Inflation sometime approached by double digits. Later regarding minus figures in December it became 8-9 percent. Now it is predicted inflation would setback some because of oil prices. Some pronounces 5 percentages. Some economists foresee 7 percentages. But in conclusion, expectation is a setback in inflation rate. The setback in inflation will also bring together decrease in interest rates. This situation will affect positively both sales of automotive sector and other sectors.”
Erce said decrease in current account deficit, setback in inflation and positive step into reforms would accelerate the speed of Turkish economy and growth. As for H1 and H2 of 2015, Hayri Erce said, “When we look at the factors which would affect Turkey, one of them monetary policy of FED. FED will not increase interest rate in first half with a great possibility. Also inflation conditions of Turkey, all of them are the factors that would affect Turkish economy positively in H1.”
For the second half of the year, will FED increase the interest rates, we must track it. In terms of European Union, much thing would not be changed. The third one is the elections and its result would be effective in H2 2015, Erce concluded.