Turkey central bank head denies dismissal rumors

"Do not give credit to other than the official statement," Basci told reporters after his discord with PM Erdogan.

Turkey central bank head denies dismissal rumors

World Bulletin / News Desk

Turkish Central Bank Governor Erdem Basci has refuted rumors that he has been replaced.

Basci has had a difference of opinion with Prime Minister Recep Tayyip Erdogan over interest rates after the Turkish economy was affected by a graft probe that targeted Erdogan’s allies last year.

Basci denied the rumors after an ordinary Central Bank meeting Thursday.

“Do not give credit to other than the official statement. We are on our duty,” he told reporters.

After a drastic increase in interest rates in January, Prime Minister Erdogan has called on the Bank to lower them, citing positive economic indicators.

The head of the Bank, which enjoys a degree of independence, Basci has responded by saying he favors a gradual adjustment according to market reactions.

The government has ordered large-scale reassignments in judiciary and police in its fight against a ‘parallel state’ – comprising followers of a U.S.-based Turkish cleric. There have been rumors in Ankara that the relocations may precede changes in major economic institutions, including the Central Bank.

Last Mod: 17 Nisan 2014, 17:49
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