Central Bank lost its independence: Turkish main opposition

By Emin Avundukluoglu

ANKARA (AA) - The leader of Turkiye's main opposition party asserted on Tuesday that the country's Central Bank was no longer an independent institution.

The Central Bank has "ceased to be an institution that ensures price stability," Kemal Kilicdaroglu told the parliamentary group of the Republican People's Party (CHP).

"The only function of the Central Bank remaining is to issue Turkish lira in the mint," said Kilicdaroglu, claiming that the bank's executives were following instructions from the government.

"When they (government) say, 'lower the interest rate,' they lower it. Central Bank executives aren't required to use their minds in any way. If they do, they're fired," he added.

Turkiye's Central Bank on Thursday kept its one-week repo rate -- also known as the policy rate -- steady at 14%, in line with market forecasts.

Consumer prices in the country posted a 36% annual hike in 2021 -- the highest in 19 years.

At its previous meeting on Dec. 16, the bank had cut its benchmark rate by 100 basis points from 15% to 14%, in line with market expectations.

Since September 2021, the bank has cut its benchmark rate by 500 basis points.