Card spending sees sharp decline after 3 months – Latest Update
Credit Card Spending Decreases in Turkey
In recent years, the amount of spending made with credit cards in Turkey has seen a significant increase, with citizens piling up on credit cards in an inflationary environment. To curb this trend, the economic management has implemented new regulations for credit cards in order to reduce spending.
One of the key measures taken was an increase in credit card interest rates, as well as limiting the number of installments for cash withdrawals and reducing the cash withdrawal amount. These steps have had an impact, with card spending beginning to slow down.
According to recent data from the Central Bank, card expenditures experienced the sharpest weekly decrease in the last three months in the week of October 11. Card spending decreased to 305.8 billion TL on that date, down from 335.8 billion TL in August.
The biggest decrease in card spending was observed in the service sector, as well as in electronic goods, stationery products, internet spending, and the furniture sector.
Will the decline in card-based spending continue? According to experts, the decrease in credit card spending is expected to continue, especially in November and December. The economic policies implemented by the government are likely to have a significant impact on economic activity and spending in the coming months.
In order to further reduce demand and stimulate the economy, experts predict that new regulations for credit cards may be introduced. This could include installment restrictions or limit adjustments in certain sectors, as well as a potential limit study based on individuals’ income.
While credit card interest rates have increased recently, experts believe that they have reached their peak and are unlikely to rise further. The Central Bank is expected to use other monetary policy tools to suppress inflation moving forward.
Overall, the decrease in credit card spending is seen as a positive development for the Turkish economy, as it helps to manage inflationary pressures and promote a more sustainable economic growth path.
