President sacks Central Bank Governor

Turkey’s President Recep Erdogan has sacked the Central Bank Governor Naci Agbal for raising interest rates to check inflation and to support the lira.

Agbal, a former Finance Minister, was removed on Saturday, about four months into his term of four years.

He had the benchmark interest rate by a cumulative 875bp to 19 per cent, a move he explained would help the lira recover.

But the decision was contrary to Erdogan’s belief that higher interest rates fuel inflation. The President insists that credit stay cheap to boost economic growth.

Erdogan has tapped Sahap Kavcioglu as a replacement. The Professor of Banking was a lawmaker on the ruling Justice and Development Party.