Erdogan: Turkey may face problems if central bank not overhauled

Wed, 2019-07-10 04:24

ISTANBUL: President Tayyip Erdogan said Turkey could face
serious problems if its central bank is not completely overhauled
after the dismissal of governor Murat Cetinkaya, the Haberturk news
website reported on Wednesday.
A presidential decree on Saturday showed Cetinkaya, whose four-year
term was due to run until 2020, had been replaced by his deputy
Murat Uysal, reigniting concerns about political interference in
monetary policy.
Erdogan told reporters on his airplane returning from a trip to
Bosnia that Cetinkaya had made decisions for which a high price was
paid and he had not inspired confidence or communicated well with
the market, Haberturk said.
“The central bank is the most important element in the
economy’s financial pillar,” Erdogan said. “If we do not
revise it completely, if we don’t put it on solid foundations, we
may face living with serious problems.”
“Most importantly, he did not inspire confidence in markets. His
communication with markets was not good,” he added.
Erdogan, a frequent critic of high interest rates, has often called
for lower rates to kickstart the now recession-hit economy. The
lira, which weakened after Saturday’s move, was unchanged at 5.73
against the dollar after Erdogan’s latest comments.

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Source: FS – All-News-Economy
Erdogan: Turkey may face problems if central bank not overhauled