Economics
Erdogan Draws the Line on Rates After Shock Central Bank Ouster
- Cetinkaya forced out before his four-year term was due to end
- Decision may derail lira’s rally, which started two months ago
This article is for subscribers only.
Hours after unexpectedly forcing out the central bank’s governor, Turkish President Recep Tayyip Erdogan made clear that he expects both the successor and the rest of the establishment to toe the government’s line on monetary policy.
The decision to dismiss Murat Cetinkaya, whose four-year term was due to end in 2020, was announced in the early hours on Saturday following a pause in interest rates that lasted for over nine months. Deputy Governor Murat Uysal was named as a replacement. Investors weren’t impressed -- the lira slid more than 3% in early Asian trading before paring losses.