Turkey has fired its central bank governor as policy differences between the government and the bank deepen in the face of an economic slump, volatility in the lira currency and high inflation, The Guardian reports.
Murat Çetinkaya, who had been serving as the governor since April 2016, was removed from the role and replaced by his deputy Murat Uysal, a presidential decree published on the official gazette on Saturday showed.
No official reason was given for the sacking, but markets have speculated over recent weeks that Çetinkaya’s position was becoming vulnerable because of his reluctance to cut rates.
The central bank has faced pressure from President Recep Tayyip Erdoğan to lower interest rates in order to revive Turkey’s economy, which slipped into recession earlier this year.
It shrank sharply for the second straight quarter in early 2019 as a punishing currency crisis and soaring inflation and interest rates took a heavy toll on overall output.
“President Erdoğan was unhappy about the interest rate and he expressed his discontent at every chance. The bank’s decision in June to keep rates constant added to the problem with Çetinkaya,” a senior government official said.