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A few weeks after Erdogan's decision to dismiss his former governor, Murat Steinkaya
SOURCE: English
The Central Bank of Turkey has experienced its biggest change of direction in recent years, weeks after Turkish President Recep Tayyip Erdogan fired his former governor, Murat Cetinkaya, to replace him with his deputy, Murat Owisal, because of violent disagreements with him about rate reduction.
Sources at the bank revealed that at least nine senior officials had been fired from their jobs in the bank.
The bank's director of research, the director of banking, the head of risk management and head of institutional transformation were among the dismissed, said Bloomberg, citing anonymous bank managers.
Officials said the layoffs targeted outside bank officials appointed by former bank governor Murat Stankaya, and that no official motive was announced.
On July 6, the Turkish president sacked Cetinkaya for refusing to reduce interest rates quickly enough. Four members of the Monetary Policy Committee, who held the key rate of 24%, were fired and decided to keep him at this level, according to Asharq Al-Awsat.
According to bank sources, layoffs would continue in the ranks of its leaders after the publication of the report on inflation for the month of July, announced early August, revealing that the return of inflation to the uptrend would reach 16.65% in July, against 15.72% last June, after the end of the tax cuts. On some goods.
The decision to raise interest rates to 24% in September 2018 was one of the measures taken by the Bank to control hyperinflation, which was 30% higher than the 25% limit following the fall from the read.
The decision to fire Steinkaya, who was to remain in office until next year due to the rejection of Erdogan's orders to reduce interest rates, caused serious concern as to the independence of the bank.
Less than three weeks after Erdogan's inauguration, the new central bank governor oversaw a cut in the key rate of 425 basis points, to 19.75%, as economists were divided on the fate of the central bank.
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