Domestic political and economic climate disturbed

The reaching of a cease-fire in the Ukrainian crisis and the signs of a possible agreement between Greece and the EU have caused the tension in global markets to ease last week. Thus, accordingly, while optimistic winds started to blow in global markets, even though indicators did not go down to their former levels, some ease has been observed in domestic markets also.

This relaxation was limited because the tension in the global markets was experienced harsher here domestically compared to other developing countries because of the already ongoing debates over the independence of the Central Bank. While global markets generated the relaxation, the fact that there was a break in this debate here was also influential; however, this does not mean it will not be rekindled. The break was due to the long overseas trip of President Recep Tayyip Erdo?an when he did not make any statements on this issue. On the other hand, upon the interest rate decision to be made at the scheduled meeting of the Central Bank Monetary Policy Council on Feb. 24, it is likely that this debate will be rekindled.

Recently, it is being discussed that this debate is not only an interest rate debate, but it was the fundamental differences of opinion between Erdo?an and Prime Minister Ahmet Davuto?lu on basic political and economic matters. Actually, it was Erdo?an?s statement saying that he was against the Undersecretary of National Intelligence Organization (M?T) Hakan Fidan?s resignation from his port to run for office in the next elections that sparked the beginning of these discussions. Erdo?an invited Justice and Development Party (AKP) administrators and deputies and openly criticized the government, highlighting this growing difference of opinion. One other factor was his...