(Bloomberg) -- Turkish President Recep Tayyip Erdogan and central bank Governor Sahap Kavcioglu met on Wednesday and discussed replacing a member of the committee that sets interest rates, according to people familiar with the matter.
The people said the meeting was positive, and the Turkish presidency posted a picture of the two men together on Twitter. It came after the lira weakened to a record low earlier on Wednesday, extending losses to nearly 5% against the dollar since the governor delivered a surprise interest-rate cut of 100 basis points on Sept. 23.
Erdogan’s office declined to comment on whether the two discussed replacing a deputy governor, but confirmed that it was a positive meeting. The presidency also said they discussed the general economic situation.
The central bank declined to comment on the details of the meeting.
The lira fell as much as 0.7% to trade at 9.1060 per dollar earlier and was 0.5% weaker at 9.0894 per dollar at 10:03 p.m. in Istanbul.
Kavcioglu was appointed governor by Erdogan in March, replacing hawkish predecessor Naci Agbal. Last week, Erdogan’s office refuted a media report that said Erdogan is “cooling” on Kavcioglu in the job. Erdogan has described himself as an “enemy” of interest rates, and espouses an unconventional theory that lowering interest rates will lead to lower inflation.
The inflation rate was 19.6% in September, when Kavcioglu lowered the benchmark interest rate to 18%.
©2021 Bloomberg L.P.
BNN Bloomberg Picks
Taking the leap from investing to wealth management
Staring down the barrel: Wineries face supply shortage, cost increases
Return-to-office plans are colliding with a shortage of key supplies
Holmes hired dermatologist when going got rough
Porsche's electric Taycan pulls ahead of the iconic 911 in sales
Virgin Galactic falls after pushing back first commercial flight