Following the volatility in the markets, the economic management has put a new set of measures on its agenda. It was stated that a reduction in the tax applied to deposits is being considered within this scope. Additionally, deposit interest rates in banks have exceeded the policy rate of 42.5 percent.

The withholding tax on deposits and funds was increased by 5 points in February. After the recent developments, there are plans to reduce the tax again. According to Bloomberg agency, the economic management has brought a new set of measures to the agenda to counter market fluctuations. Initially, the reduction of the withholding tax rate on deposits and funds is being considered. This regulation aims to support the Turkish Lira.

The withholding tax on deposits with a maturity of up to 6 months was increased from 10 percent to 15 percent on February 1. The deduction rate in funds was also raised by the same percentage. DEPOSIT INTEREST RATES ABOVE POLICY RATE

On the other hand, the movement in deposit interest rates did not go unnoticed. With expectations rising that the Central Bank would keep the interest rate stable, deposit interest rates reached 45 percent. Short-term deposits rose back to the range of 45-47 percent. Last week, the interest rate on 32-day term deposits was applied at 42.5 percent.

As a result, deposit interest rates have exceeded the policy rate of 42.5 percent.