Reuters says Erdogan’s confidence in governor of Turkey’s Central Bank has been shaken

Reuters has published an interesting news story about the relationship between the Head of the Central Bank of Turkey, KAVCIOGLU and President ERDOGAN. “The PRESIDENT’s confidence in the head of the CBRT has been shaken”, a source is reported to have told the agency.

According to Reuters, two of the three sources who informed them pointed out that Erdogan had been told in the past that a lower inflation and lower interest rate policy could be implemented sooner, but that the realization was not even close to that as of September.

Based on information provided by said source, Reuters could not be certain on whether ERDOGAN’s dissatisfaction would result in KAVCIOGLU’s termination from his post.

According to sources who did not want to be named because of the sensitivity of the issue, Erdogan was disappointed that the interest rate cuts he had previously expected could not be made until last month. The question of whether Kavcıoğlu still has the President’s trust was not answered by the Presidency at the time of writing the news.

Breaking point for KAVCIOGLU (head of CBRT)

Erdogan abruptly dismissed three central bank governors, based on difference of opinion in interest rate policies over the past 2.5 years. It is noted that the creditworthiness and monetary policy

Analysts note that the recent CBRT rate cut also proves the impact of Erdogan, who also describes himself as an enemy of interest rates, on the CBRT. Despite rising inflation, Erdogan has long said that he wants low interest rates to pave the way for investments and create more jobs. TL, on the other hand, has been losing value in response to this.

Two sources close to the presidency pointed out that KAVCIOGLU had failed to reduce inflation in recent months and that what the President had said in his previous conversations had not been realized, and they also said that this was a “breaking point”.

His confidence has been shaken

“The PRESIDENT’s confidence in the CBRT president has been shaken,” said a source familiar with the matter, who said that although “rapid interest rate cuts” were expected, the interest rates set by the previous CBRT President Naci Agbal had been kept constant for “months” at a value of 19 percent.

“Erdogan and the Presidency are still not satisfied with the practices of Kavcıoğlu and the CBRT due to the high interest rates and practices.”

The question of whether Kavcıoğlu still has the confidence of the President had remained unanswered until today.

SOURCE: halktv.com.tr/ekonomi/erdoganin-kavciogluna-olan-guveni-sarsildi-475235h

LAST MINUTE STATEMENT FROM PRESIDENTIAL PALACE

Today, there was a statement from the Palace (Presidential Administration Office) regarding concerned news. Fahrettin Altun, the President of Presidential Communications, denied the news in Reuters titled “Erdogan is also getting cold from the last CBRT president”.

Fahrettin Altun denied the news saying, “False news used to be the problem of social media. Now it seems that the mainstream media is suffering from the same issue. It is alarming that even large organizations put such lies into circulation.”