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☆ Turkey’s Central Bank Chief Steps Down Amid Long Inflation Battle
▼ + stars: | 2024-02-03 | by ( Ben Hubbard | More About Ben Hubbard | ) www.nytimes.com time to read: 1 min

President Recep Tayyip Erdogan of Turkey appointed a new central bank governor early Saturday, hours after the abrupt resignation of his previous appointee, who said she was stepping down because of “a major reputation assassination campaign.”The departing central bank chief, Hafize Gaye Erkan, was the fifth in five years, and the first woman to hold the post. The bank’s deputy governor, Fatih Karahan, was swiftly promoted to take her place. The surprise change-up came about eight months into a shift in Turkey’s economic program aimed at taming a yearslong cost-of-living crisis that has been painful for many Turks. Annual inflation as of last month was about 65 percent. In an apparent effort to reassure investors, senior officials said that Ms. Erkan’s departure did not signal a change in policy.

Persons: Recep Tayyip Erdogan, ”, Hafize Gaye Erkan, Fatih Karahan, Erkan’s Locations: Turkey

ANKARA, Turkey (AP) — Turkey’s central bank delivered another huge interest rate hike on Thursday as it tries to curb double-digit inflation that has left households struggling to afford food and other basic goods. The bank pushed its policy rate up by 5 percentage points, to 40%, marking its sixth big interest rate hike in a row focused on beating down inflation that hit an eye-watering 61.36% last month. President Recep Tayyip Erdogan has long been a proponent of an unorthodox policy of cutting interest rates to fight inflation and had fired central bank governors who resisted his rate-slashing policies. Other central banks around the world have raised interest rates rapidly to target spikes in consumer prices tied to the rebound from the COVID-19 pandemic and then Russia's war in Ukraine. Under Erkan’s tenure, the central bank has hiked its main interest rate from 8.5% to 40%.

Persons: Recep Tayyip Erdogan, Merrill Lynch, Mehmet Simsek, Hafize Gaye Erkan Locations: ANKARA, Turkey, Ukraine, U.S

ISTANBUL (AP) — Turkey’s central bank raised its key interest rate by 5 percentage points Thursday, another large but expected hike that signals a continued push toward more traditional economic policies under President Recep Tayyip Erdogan. The Turkish central bank started cutting rates in late 2021 under pressure from Erdogan. Before their appointments, the central bank had cut its key interest rate from around 19% in 2021 to 8.5% earlier this year. Erdogan has fired three central bank governors who resisted pressure to cut rates before appointing Erkan’s predecessor in 2021. Following Erkan’s appointment, the bank has raised its key rate a series fo time: by an aggressive 7.5 percentage points in August, 2.5 percentage points in July and 6.5 percentage points in June.

Persons: Recep Tayyip Erdogan, Erdogan, Merrill Lynch, Mehmet Simsek, Hafize Gaye Erkan, Erkan’s Organizations: U.S . Federal Reserve, Bank of England, U.S Locations: ISTANBUL, Turkey, Turkish, Erdogan, Central, Ukraine

But it was the repeated use of the word holistic - or "bütüncül" - by the former Goldman Sachs banker and Turkey's first female central bank chief that caught most of the attention. "We are making the gradual and steady rate hikes more holistic and stronger through quantitative tightening and selective credit tightening," Erkan told the news conference. "Unless the credit and monetary tightening really kick in, investors would expect the central bank to hike more aggressively," he said. "She clearly wants to be the face of Turkish monetary policy making," said Neuberger Berman's Nazli. "We saw a person who seems to be capable of being a central bank governor, compared to previous governors, but cautious."

Persons: Goldman Sachs, Hafize Gaye Erkan, Erkan, Tayyip Erdogan, Turkey's, Kaan Nazli, Neuberger Berman, policymaker Mehmet Simsek, Tim Ash, Erdogan, Ash, Marek Drimal, Neuberger Berman's Nazli, swerved, Emre Akcakmak, Karin Strohecker, Libby George, Tomasz Janowski Organizations: Turkey's, Ministry, BlueBay Asset Management, Societe Generale, East Capital, Thomson Locations: Rosario, London

☆ Opinion | The Woman in Charge of Saving Turkey’s Economy
▼ + stars: | 2023-06-12 | by ( Peter Coy | ) www.nytimes.com time to read: +1 min

When all hope is lost, hire a woman to take over (and take blame). Studies of the so-called glass cliff have found that companies are more likely to bring women on as chief executives or directors when business is bad. Now there’s Hafize Gaye Erkan, a former Wall Street banker who has been named the new central bank governor of Turkey. It “has consistently supported Ukraine politically and militarily without alienating Russia economically,” Yevgeniya Gaber, a nonresident senior fellow at the Atlantic Council in Turkey, wrote recently. Turkey also has the world’s 19th-largest economy, with a gross domestic product of nearly $1 trillion a year, according to the World Bank.

Persons: Linda Yaccarino, Hafize Gaye Erkan, Brad Setser, ”, “, Yevgeniya Organizations: Wall Street, Council, Foreign Relations, Central Bank of, NATO, Atlantic Council, World Bank, International Monetary Fund Locations: Turkey, Republic of Turkey, Ukraine, Russia

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