There is confusion over the announcement of the resignation of Turkish Economy and Finance Minister Berat Albayrak, who is the son-in-law of Turkish President Recep Tayyip Erdogan, hours after the ouster of Turkish Central Banker Murat Uysal on Saturday.
Albayrak's resignation will have to be approved by Turkish President Recep Tayyip Erdogan. His successor, Agbal, was the country's finance minister from 2015 to 2018.
"If he doesn't hike, then we're back to where we were and there was no point in firing the governor", Timothy Ash, senior sovereign strategist covering emerging markets at BlueBay Asset Management.
The Turkish currency has shed about a third of its value against the dollar this year and became the world's worst performer last month.
Economists estimate that Turkey has burned through more than $100 billion in a wasted effort to prop up the lira since the start of previous year. Television networks, mostly owned by businesses close to the presidency, had studiously ignored the departure of the government's economic policy-maker.
Erdogan has long called publicly for lower rates and last month warned about the "devil's triangle" of interest rates, foreign exchange and inflation - raising further concerns about the central bank's policy independence.
"After serving in ministerial posts for almost five years, I took the decision not to continue my duty [as finance minister] due to health issues", Albayrak said in a statement posted to his Instagram account on Sunday.
Whether his resignation was accepted remains unclear.
The new governor, Naji Aghbal, said the central bank would "decisively" use all policy tools to achieve its main objective of price stability.
Agbal subscribes to mainstream economic theory on interest rates.
Turkish media speculated that Albayrak opposed Agbal's appointment. He is married to Erdogan's eldest daughter Ersa and has four children.
But the central bank's former chief economist pushed out a year ago welcomed the news on Twitter.
The bank had surprised investors in September when it raised the rate from 8.25% to 10.25%.