Turkey's leader removes Central governor after a price hike
The president of Turkey has removed the country's bank leader after just a few months. This is connected to the increase in interest rates.
President Erdogan removes Bank leader
Turkey's president has removed the country bank leader after just four months in office. The former governor has received applause from bank shareholders after he raised interest rates and pleads for better economic measures.
However, in law by the president, Mr. Recep Erdogan said Governor Naci Agbal had left his position. He will be substituted by a Banking don who has always argued for low rates. Agbai was recruited to head the central bank after Turkey's currency hit a decline and inflation in the country grew. When he was appointed, Agbai raised the benchmark to 890 basis points which he wants to build the nation's economy.
Turkey's central bank has said the stricter financial policy would be maintained till when the economy of the country improves. President Erdogan has always hated a hike in interest rates, saying some rates cause inflation which doesn't work with financial theory. Over the years, he has put pressure on the bank to keep prices low for lending and development.
The government should stop interfering in bank policies - Critics
Many financial analysts have said the continuing interference of the president has made the central bank lose independence. These critics have said unless the apex bank gets more financial autonomy things may not. Improve. They pointed out that the former bank governor said that his policies were more long-term but the president had none of them.
According to these critics, is Putin a financial expert to decide whether rates are high or not. However, the president's aides have insisted that interference is needed to put checks on the activities of the bank's chiefs, they also said as long as they were appointed by the president, he has a say.