*** Saturday saw newswires reveal that.......>

TURKEY: *** Saturday saw newswires reveal that Pres. Erdogan had decided to

remove the gov. of the country's central bank, Murat Cetinkaya, from his role.

- While no off'l reason was given, Erdogan has openly criticised the central

bank's policy in recent times, exerting political pressure for lower interest

rates at a time when inflation was sky rocketing. Erdogan is of the belief that

lower rates would result in lower inflation, however, the calls were also seen

as an attempt to draw some support for the faltering economy/TRY. Turkey's

Hurriyet newspaper has quoted sources suggested that Erdogan said "we weren't on

the same page," re: Cetinkaya. Cetinkaya was replaced by his deputy, Murat

Uysal. Uysal's independence is already under scrutiny, as is natural given the

circumstances. Regional experts have highlighted that Uysal is a dove, although

some question his credentials as an economist, given his banking background, but

most have noted he has a good feeling for the pulse of fin'l mkts.

- The timing is interesting. Headline CPI hit the lowest level in a year in June

& many had already suggested that this gives the Turkish central bank room to

cut rates later this month (its last move was a 625bp hike back in Sep '18).