In a decree published in the official gazette on Saturday morning, President Recep Tayyip Erdogan announced the exclusion of former finance minister, Nasi Agbal.
Turkey’s president has fired the governor of the central bank, who in his four months in office won investors’ praise for rising interest rates and strict monetary policies.
In a decree published in the official gazette on Saturday morning, President Recep Tayyip Erdogan announced the exclusion of former finance minister, Nasi Agbal. He is to be replaced by a banking professor who has argued for lower interest rates.
Mr. Abbal was brought in to lead the central bank after the Turkish lira’s record lows and inflation soared. In the months of his post, Mr. Abble had given the benchmark rate a total of 875 basis points, working to rebuild the credibility of the central bank after years of unconventional policies worsened.
Mr. Abbal took the most recent growth rate of 200 points to 19% on Thursday, which was higher than analysts expected. The bank said monetary policy would be maintained until inflation reached 15.61%, brought under control.
Mr. Erdogan is openly opposed to high interest rates, claiming high rates to cause inflation, which stands in opposition to mainstream economic theory. It has pressurized the central bank to keep lending and growth rate low. Critics say that the independence of the central bank has been severely damaged through political pressure.
On Saturday, Mr. Erdogan’s decree appointed Sahap Kavikoglu as the new central bank chief. Mr. Kavisoglu is a banking professor and a columnist in the pro-government newspaper, where he has argued for lower interest rates. He previously served as an MP in Mr. Erdogan’s ruling party.
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