Turkey: Central bank head Basci meets with President Erdogan
Turkish Central Bank Governor Erdem Basci gave an economic briefing to President Recep Tayyip Erdogan on Wednesday evening, Anadolu agency reported.
At the meeting, which included Deputy Prime Minister Ali Babacan, who is responsible for the economy, Basci gave an 130-page presentation on restoring confidence in the economy and on limiting public debt.
The Turkish lira gained against the dollar ahead of the meeting, rising to about 2.610 to 2.640 on Wednesday night, as international investors regained confidence that the central banker and the president had come to an agreement.
Erdogan has repeatedly criticized the central bank for its tight money policy. The meeting seems to show that the president is prepared to form a partnership with Basci in the future.
A statement from the president's office after the meeting said: "At the Turkish president's meeting with Deputy Prime Minister Ali Babacan and Central Bank of the Republic of Turkey governor Erdem Basci, it was pointed out that the foundations of the economy in Turkey are solid. The meeting focused on the implementation of policies for strong and balanced growth. The president showed sensitivity to issues of interest rates and production."
The presentation came after Turkish Prime Minister Ahmet Davutoglu met with his nine Cabinet ministers, banking regulators, and central bank Governor Erdem Basci on Tuesday to discuss the state of the economy.
After Tuesday's 8-hour meeting, the prime minister's office said the government will maintain strict fiscal discipline as foreseen in its Medium-Term Economic Program and that the Turkish central bank is taking the necessary measures to control inflation.