Published: Sun, July 07, 2019
Global News | By Blake Casey

Months of tension: Erdogan sacks Turkey central bank governor amid rate tensions

Months of tension: Erdogan sacks Turkey central bank governor amid rate tensions

Turkish President Tayyip Erdogan sacked the governor of the central bank on Saturday as differences between them deepened over the timing of interest rate cuts to revive the recession-hit economy.

According to Reuters news reports, Turkish central bank governor Murat Cetinkaya, serving since April 2016 as the governor, was ousted from his role and been replaced by deputy governor Murat Uysal, as per a presidential order published on the official gazette.

It is thought it may be linked to a row over interest rates, which the government is trying to keep down.

There had been recent speculation that Cetinkaya could be replaced amid disagreements with the government on cutting interest rates. Erdogan had called in the past from his point of view, high key interest rate as "the mother and father of all Evil in the economy".

But the central bank raised the base interest rate to 24 percent from 17.5 percent a year ago in order to control inflation.

Erdogan has been using the powers granted after last year's general election, which marked the transfer of the parliamentary system to the executive presidency. "The central bank is a captive being kept in the palace", said the main opposition party spokesman Faik Oztrak, referring to Erdogan's office.

Murat Uysal says he will continue to "independently apply monetary policy tools to maintain price stability".

Team Rocket for Pokemon Go Teased Again by Niantic
As for the upcoming Pokemon movie , while it launches in Japan on July 11, it won't arrive in western theaters until November 17. But given Niantic's tradition of reusing content with visual updates in the past, it's probably safe to assume the same here.

The Turkish economy shrank sharply for the second straight quarter in early 2019 as a punishing currency crisis and soaring inflation and interest rates took a heavy toll on overall output.

Two government sources told Reuters that differences between the government and the governor over the conduct of monetary policy have deepened in the past few months.

Annual inflation hit a 15-year high in October above 25%, but later dipped and is now running just over 15.5%.

In 2018, the Turkish economy struggled due to a depreciation of the national currency, the lira, which fell almost 40 percent against the United States dollar as relations between Ankara and Washington deteriorated. Turkey is also struggling with skyrocketing 15 percent inflation.

The communication channels will be used in line with the bank's targets, he added.

Some raised concerns over the bank's independence following the announcement.

Turkey's president has fired the central bank governor amid the country's economic downturn.

Like this: