Reuters was first to report that Turkey’s President Tayyip Erdogan has sacked three members of the Central Bank’s Monetary Policy Committee (MPC), clearing the way for further possible interest cuts as soon as next week. The news, announced at midnight, drove the Turkish lira down 1% to a fresh record low against the dollar. The currency has weakened 19% so far this year over concerns about the Central Bank’s credibility in combating stubbornly high inflation, and its losses have accelerated since the bank unexpectedly cut rates by 100 basis points last month. The latest firings removed two MPC members who were seen to oppose the rate cut, and left the committee with little monetary policy experience after a years-long overhaul by the president. An accompanying Reuters Factbox spelled out the scale of those changes.
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