When power gets to the head, tyranny comes naturally. This seems to be case of Turkish president Recep Tayyip Erdogan who has kicked the Central Bank governor Murat Cetinkaya via a Presidential decree.
He has used his powers to do so, and quiet openly. Centinkaya had one more year to finish his term. His seat will now be held by deputy governor Murat Uysal, according to the decree.
Turkey was reeling under inflation for a long time. Under the leadership of Centinkaya, interest rates were aggressively, something that doesn’t agree with Erdogan.
In early 2016, the bank’s target rate was 7.5%; today, it sits at 24%. This orthodox approach to addressing inflation Erdogan believed leads to inflation.
Erdogan has been seen to have gone by his ways, something that most leaders of other countries wouldn’t do, political analysts believe. His behaviour has been termed by the media as “bullying the central bank,antagonizing investors, and consolidating personal power over economic institutions (his son-in-law took over as finance ministerlast year).”
Erdogan has been considered the strong man leader who has beenputting pressure on the central bank to cut interest rates. The central bank had kept rates high since last September to ward off a currency crisis, but the inevitable has finally happened and a shockwave has been felt in the market as the currency plunged byliterally 3 percent.