[ad_1]
The President of Turkey has fired a deputy governor of the country’s central bank. This is the third senior official to be fired in a series of interventions in two months against nominally independent institutions that have ordered investors feeling anxious.
Recep Tayyip Erdogan (Recep Tayyip Erdogan) issued a decree in the Official Gazette early on Tuesday morning, dismissing Oguzhan Ozbas, a member of the Monetary Policy Committee He was replaced by Semih Tumen, professor of economics at TED University in Ankara.
In March, Erdogan fired Naci Agbal, the third central bank governor in less than two years. Newspaper columnist Sahap Kavcioglu replaced Sahap Kavcioglu, and he agreed with Erdogan’s unconventional view that high interest rates promote rather than quell inflation . A week later, Erdogan replaced Lieutenant Governor Murat Cetinkaya.
Since March, the lira has depreciated 14% against the U.S. dollar due to concerns that the banks under Kavcioglu will not be able to compete with Erdogan to maintain tight monetary policy to combat inflation. In three years, the inflation rate has remained in double digits.
Erdogan (Erdogan) said that this year’s interest rate and inflation rate will be less than 10%. For a long time, he has been for the central bank to suppress lending rates to stimulate the economy.
The Central Bank will hold its next interest rate setting meeting on June 17. Kavcioglu promised to tighten policy until inflation slows, but some hawkish language of his predecessor has been removed from the policy statement.
Toume is 44 years old and holds postgraduate degrees from the London School of Economics and the University of Chicago. He has previously held various positions in the Central Bank and has served as Erdogan’s human resources consultant.
Only three of the seven members of the Monetary Policy Committee have served as decision-makers for three or more years, and the remaining members have been appointed since early 2020.
[ad_2]
Source link
