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Turkish Central Bank fails to combat inflation

The governor of Turkey's Central Bank has done well in financial stability, but time is running out for him to control inflation.
Turkey's central bank governor Erdem Basci addresses the general assembly of the bank in Ankara April 17, 2014. Turkey's current account deficit to gross domestic product (GDP) ratio was expected to be between 5-6 percent at the end of 2014, Basci said on Thursday.   REUTERS/Umit Bektas (TURKEY - Tags: POLITICS BUSINESS HEADSHOT) - RTR3LO49
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Turkey’s Central Bank, whose resistance to government pressure to lower interest rates proved to be the right decision, has not had the same success in ensuring financial stability by controlling inflation.

The Central Bank’s record against inflation has been dismal not only this year, but for several years. Since Erdem Basci was appointed its governor in 2011, none of the bank's inflation aims have been achieved.

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