The Turkish president has sacked one of the vice-presidents of the country’s central bank. He is the third senior official to be removed from his post within two months following a series of interventions at a nominally independent institution that has disturbed investors.

Early Tuesday, Legep Typ Erdogan announced a decree in the official bulletin to fire Ogzan Osbas, member of the Monetary Policy Committee, and replace him with Semi-Tumen, professor of economics at TED University in Ankara.

In March, Prime Minister Erdogan sacked Nadiabal, the third central bank governor, in less than two years. Agbal has been replaced by newspaper columnist Sahap Cavsiogur, who shares Erdogan’s unconventional view that high interest rates stimulate inflation rather than suppress it. A week later, Prime Minister Erdogan replaced Deputy Governor Murat Cetinkaya.

Lira is concerned that banks under the Cabsioglu administration may not be able to tighten monetary policy against Prime Minister Erdogan to fight inflation, which has remained at double-digit levels for the past three years. It has lost 14% of its value against the dollar since March. ..

Erdogan said interest rates and inflation will fall below 10% this year. He has long badged central banks for cutting lending rates in order to stimulate the economy.

The central bank will hold the next interest rate setting meeting on June 17. Kabushioguru vowed to keep the policy tight until inflation slows, but withdrew some of his predecessor’s belligerent words from the policy statement.

Tumen, 44, is a graduate of the London School of Economics and the University of Chicago. Previously, he played various roles at the Central Bank and was Erdogan’s human resources advisor.

Only three of the seven members of the monetary policy committee have been decision-makers for more than three years, and the rest have been appointed since early 2020.

Erdogan dismisses deputy governor of the Turkish Central Bank

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