(Bloomberg) -- Turkey reduced the maximum interest rate that banks can charge for credit card borrowings.
The monthly maximum contractual rate for credit card borrowings in liras was cut by 15 basis points to 1.25%, while the monthly maximum overdue interest rate was set at 1.55%, down from 1.7% previously, according to a central bank ruling published in the official gazette on Saturday. Rates for card borrowings in foreign currency were also reduced, according to the ruling.
The decision follows a series of measures that policy makers have taken to contain the damage from the coronavirus outbreak. On March 17, the central bank cut its policy rate by a percentage point to 9.75%. It also announced steps to boost liquidity, including cutting the amount of foreign exchange lenders must park at the monetary authority.
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