ANKARA (Reuters) – Turkish President Tayyip Erdogan sacked the central bank governor for refusing the government’s repeated demands for rate cuts, Hurriyet newspaper on Sunday quoted Erdogan as telling a meeting with his party’s lawmakers.
Governor Murat Cetinkaya, whose four-year term was due to run until 2020, was replaced by his deputy Murat Uysal, a presidential decree published early on Saturday in the official gazette showed.
Economy - Meetings - Rates - Rate - Cut
“We told him repeatedly in economy meetings that he should cut rates. We told him that the rate cut would help inflation to fall. He didn’t do what was necessary,” Erdogan was quoted as saying.
The daily Hurriyet said Erdogan gave his explanation for sacking Cetinkaya, almost a year before his term was due to end, during a consultation meeting in Istanbul with the members of his ruling AK Party.
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“We weren’t on the same page,” Erdogan added.
No official reason was given for the sacking, but government sources cited Erdogan’s frustration that the bank has kept its benchmark interest rate at 24% since last September to support the ailing lira currency.
Statement - Saturday - Uysal - Policy - Instruments
In a written statement on Saturday, Uysal said he would independently implement monetary policy instruments focused on achieving and maintaining the primary objective of price stability.
Despite the new governor’s assurance, critics say the move once again showed that Erdogan was in full control of the monetary policy, and that Turkey would witness a period of rapid rate cuts.
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