Turkey’s central bank is making efforts to tame stubborn inflation. Inflation rates have zoomed up to two-digit readings. This certainly requires drastic measures. The new governor of the central bank has pledged to restrain inflationary pressure.
Newly appointed central bank Governor Fatih Karahan stated that he would forge ahead with the struggle against soaring inflation. The new leader underscored the regulator’s priority to ensure the stability of consumer prices. According to Fatih Karahan, the ongoing hawkish monetary policy will be pursued until inflation is brought down to the target level. "We will not allow any deterioration in the inflation outlook," the official stated.
Previously, Fatih Karahan served as deputy governor of the Central Bank of Turkey. He also worked at the Federal Reserve Bank of New York and taught at Columbia University and New York University. Two years ago, Fatih Karahan was employed as a senior economist at Amazon.
Inflation in Turkey soared to 64.77% in December 2023 from a year ago. The annual CPI was recorded at 61.87% in November. Remarkably, the official inflation rates differ strikingly from estimates of the population in Turkey. People insist that the annual rate surged to a mind-boggling 96%. This is 1.5 times higher than the official inflation acceleration.
On Friday, February 2, Hafize Gaye Erkan, the head of the Turkish regulator, asked President Recep Tayyip Erdogan to allow her resignation. Central bank governor Hafize Gaye Erkan made the forceful decision due to concerns about threats to her family. Besides, “a reputation assassination campaign has recently been organised against me,” she explained her stepping down on social media platform X.
