, Columnist
Turkey's Erdogan Is Made to Wait for Cherished Rate Cut
The president's removal of Naci Agbal made it harder for his central bank successor, Sahap Kavcioglu, to loosen policy.
Defending the lira.
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Recep Tayyip Erdogan will have to wait a while longer for that interest rate cut he desires. For the reduction’s failure to materialize Thursday, the Turkish president can thank — or blame — himself.
Turkey’s central bank kept its benchmark rate at 19% on Thursday. In their first meeting under governor Sahap Kavcioglu, officials reiterated their “primary objective of price stability’’ and pursuit of a “permanent fall in inflation.” In a concession to the rate-cut predilections of Erdogan, policy makers removed from their statement a commitment to tighten further if needed.