September 16, 2018 / 8:00 AM / a year ago

Turkish central bank raises maximum credit card rates from October

FILE PHOTO: A logo of Turkey's Central Bank (TCMB) is pictured at the entrance of the bank's headquarters in Ankara, Turkey April 19, 2015. REUTERS/Umit Bektas/File Photo

ISTANBUL (Reuters) - Turkey’s central bank said on Sunday it was raising the maximum interest rate credit card lenders can charge each month to 2.25 percent for Turkish lira and 1.80 percent for foreign exchange transactions.

The interest rate where payments are overdue will increase to a maximum 2.75 percent for Turkish lira charges and 2.30 percent for those in foreign currencies.

The revisions, which come into effect on Oct. 1, represent a 23 basis point increase for lira rates and an 18 basis point increase on foreign exchange from the limits set by the bank for the third quarter.

They follow the central bank’s decision on Thursday to hike its benchmark interest rate by 625 basis points to 24 percent.

Reporting by Dominic Evans; Editing by Mark Potter

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