Turkey central bank is as independent as the Fed, Albayrak says

Turkey’s central bank enjoys as much independence as the U.S. Federal Reserve, Turkish Economy and Finance Minister Minister Berat Albayrak said.

Albayrak spoke during a panel at the World Economic Forum in Davos, Switzerland in wide-ranging comments covering sovereign debt, corporate loans, economic growth and inflation, according to Dünya newspaper.

Turkey’s government has been accused by many economists of severely compromising the central bank’s independence from politicians after President Recep Tayyip Erdoğan sacked and replaced its governor in July for failing to reduce interest rates. Since then, the bank has slashed its benchmark rate to 11.25 percent from 24 percent.

Albayrak also sought to reassure investors about Turkey’s debt profile, which he said was very stable. Even corporate debt levels in the country were good when compared with peers, he said.