, Columnist
Turkey's Inflation Busting Central Banker Faces an Implacable Foe
Naci Agbal is reckoning with bigger forces than Erdogan’s hatred of high interest rates. He’s having to deal with a world in thrall to easy money.
Price buster.
Photo: Bloomberg
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Turkey’s new-found credibility as an inflation fighter is imperiled by global forces more pervasive than President Recep Tayyip Erdogan’s hatred of high interest rates.
The biggest risk to the Turkish central bank’s three-month campaign of tight money isn’t Erdogan, who clings to an unorthodox view that high borrowing costs result in inflation, and not the other way around. The biggest challenge is the very disappointing start to the year for the global economy and the profound disinflationary forces still gripping the world.