Global investors who had wagered on Turkey’s return to a more orthodox monetary policy braced for a rough ride after President Recep Tayyip Erdogan replaced the central bank’s hawkish governor with an advocate of low rates. Erdogan fired Governor Naci Agbal, who had boosted the central bank’s credibility by delivering 875 basis points of interest-rate increases since his appointment in November. While Agbal’s shift toward market-friendly policies helped make the lira the best carry-trade currency this year through March 19, the gains may unravel after the president gave the job to Sahap Kavcioglu, a professor of ... (full story)