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ANKARA, Turkey (AP) — The work to tame inflation in Turkey — namely through interest rate hikes — will continue “with determination,” the country’s new central bank chief said Thursday, offering some certainty about efforts to right the battered economy following his precedessor's surprise resignation. The duty of the central bank is to ensure and maintain price stability,” Karahan told reporters in Turkey’s capital, Ankara. Erdogan, who has previously fired central bank governors who spurned his unorthodox policies, appointed the new economic team after getting reelected in May. The Turkish central bank most recently raised its key interest rate by 2.5 percentage points in January, when inflation reached nearly 65%. Despite such hikes, inflation remains high — consumer prices rose to an eye-watering 64.86% in January from a year earlier, according to figures released Monday, up from 64.77% in December.

Persons: Fatih Karahan, Goldman Sachs, Karahan, Mehmet Simsek, ” Karahan, Hafize Gaye Erkan, ”, Erkan, Recep Tayyip Erdogan's, Erdogan, ___ Robert Badendieck Organizations: Finance, Turkish Locations: ANKARA, Turkey, Ankara, Turkish, Ukraine, Istanbul

ISTANBUL (AP) — Turkey has seen its fifth central bank leader depart in as many years as Hafize Gaye Erkan, the first woman in the top role, stepped down after just eight months in the job. Photos You Should See View All 45 ImagesHere are key things to know about the central bank shakeup and what it means for Turkey's battered economy:WHY IS THERE A NEW CENTRAL BANK LEADER? Erkan resigned after weeks of media stories about her father’s undue influence in the central bank’s Istanbul office. Previous changes in central bank leadership has seen Erdogan row back on efforts to bring inflation under control through interest rate hikes. He was brought in as the bank’s deputy head at the same time Simsek took over the Finance Ministry and Erkan was appointed to lead the central bank.

Persons: Hafize Gaye Erkan, Goldman Sachs, Recep Tayyip Erdogan, — Erkan, ”, Fatih Karahan, Mehmet Simsek, Erdogan, Erkan, Karahan, Simsek's, Simsek, Liam Peach, Selcuki, ” “ It’s, ” Selcuki Organizations: —, Finance, WHO, FATIH, Finance Ministry, University of Pennsylvania, Federal Reserve Bank of New, Amazon, Capital Economics, Istanbul Economy Research Locations: ISTANBUL, — Turkey, Turkey, Istanbul, Simsek, U.S, Federal Reserve Bank of New York, Columbia, New York, Ankara

☆ Turkey's new central bank governor, formerly at Amazon and New York Fed, seen as a 'credible choice'
▼ + stars: | 2024-02-05 | by ( Natasha Turak | ) www.cnbc.com time to read: +2 min

Turkey's newly appointed central bank governor Fatih Karahan has his work cut out for him, named to the job by presidential decree over the weekend after the sudden resignation of his predecessor, Hafize Gaye Erkan. Previously the central bank's deputy governor, Karahan's resume features years spent in prominent American institutions and companies. Turkey's consumer price index print came out Monday showing a roughly 65% increase year-on-year for the month of January. Its central bank has made eight consecutive interest rate hikes since May 2023 — for a cumulative 3,650 basis points — in an effort to rein in soaring inflation. While painful for the country, investors and economists say the rate hikes have been necessary and that continuity in monetary policy priorities will engender confidence in the new central bank chief.

Persons: Turkey's, Fatih Karahan, Hafize Gaye Erkan, Karahan's, —, Karahan Organizations: University of Pennsylvania, Federal Reserve Bank of New, Columbia University, New York University, Amazon, greenback Locations: Federal Reserve Bank of New York, Turkish

☆ 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

☆ Turkey central bank chief quits, citing need to protect her family
▼ + stars: | 2024-02-03 | by ( ) www.cnbc.com time to read: +3 min

Turkish Central Bank Governor Hafize Gaye Erkan answers questions during a news conference for the Inflation Report 2023-III in Ankara, Turkey on July 27, 2023. Anadolu Agency | Anadolu Agency | Getty ImagesTurkey's central bank governor Hafize Gaye Erkan resigned on Friday, citing a need to protect her family amid a "reputation assassination", and she was swiftly replaced by a deputy who is expected to carry on her tight policy stance. The first woman to lead the central bank, Erkan was its fifth governor in as many years. Since then the central bank had hiked its key rate to 45% from 8.5%. Last month, opposition newspaper Sozcu published an article about a central bank employee who said she was wrongfully dismissed from the bank by Erkan's father.

Persons: Turkish Central Bank Governor Hafize Gaye Erkan, Hafize Gaye Erkan, Tayyip Erdogan, Erkan, Fatih Karahan, Erdogan, Sozcu, Erkan's Organizations: Turkish Central Bank Governor, Anadolu Agency, Getty, Official Gazette, Turks, Federal Reserve Bank of New Locations: Ankara, Turkey, Federal Reserve Bank of New York, U.S

ANKARA, Turkey (AP) — Turkey’s central bank raised its key interest rate by another 2.5 percentage points on Thursday, pressing ahead with a series of hikes aimed at combating inflation that reached nearly 65% in December. Erdogan is a longtime proponent of an unorthodox policy of cutting interest rates to fight inflation, which runs contrary to mainstream economic thinking. The European Central Bank is expected to keep its record-high benchmark rate steady at its meeting Thursday, following a rapid series of hikes over more than a year. Hafize Gaye Erkan, a former U.S.-based bank executive, took over as central bank governor in June, becoming the first woman to hold that position in Turkey. Previously, Erdogan had fired central governments who reportedly resisted his push to cut interest rates.

Persons: Recep Tayyip Erdogan, Erdogan, Merrill Lynch, Mehmet Simsek, Hafize Gaye Erkan, Erkan, ” Organizations: European Central Bank, Turkish Locations: ANKARA, Turkey, Ukraine, U.S

☆ Exclusive: European fund giant Amundi dips toe back into Turkey's lira
▼ + stars: | 2023-11-28 | by ( Marc Jones | ) www.reuters.com time to read: +4 min

A logo of Amundi is seen outside the company headquarters in Paris, France, February 3, 2023. "We have started to cover our underweight in Turkish lira a few weeks ago," Strigo told Reuters, referring to the process of taking a more positive view on the currency. Amundi, while the first major fund to formally declare its shift, is not alone in testing the waters, according to other foreign investors and bankers. "It is probably the easiest way for now," Strigo said about the use of FX forwards to express that balance. With the bank having lifted rates to 40% from 8.5% since June, Amundi thinks another hike next month could finish the job.

Persons: Sarah Meyssonnier, Sergei Strigo, Amundi's, Strigo, Tayyip Erdogan, Amundi, Goldman Sachs, Erdogan, sceptics, Central Bank Governor Hafize Gaye Erkan, Marc Jones, Karin Strohecker, Jonathan Spicer, Susan Fenton Organizations: REUTERS, Reuters, Investment, JPMorgan, FX, Graphics, Central Bank Governor, Reuters Graphics Reuters, Thomson Locations: Paris, France, Turkey, Turkish, New York, London, Istanbul

☆ Turkey hikes interest rates to 40% to battle sky-high inflation
▼ + stars: | 2023-11-23 | by ( Associated Press | ) www.businessinsider.com time to read: +2 min

Turkey's central bank raised interest rates by five percentage points on Thursday. It was the sixth consecutive rate hike and took the rate to 40%. AdvertisementANKARA, 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. AdvertisementFollowing Erdogan's reelection in May, he appointed a new economic team, which has quickly moved toward reversing his previous policy of keeping interest rates low. 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 Organizations: Service Locations: ANKARA, Turkey, Ukraine, U.S

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

The top appeals court, or Yargitay, took the unprecedented step of making a criminal complaint against Constitutional Court judges on Wednesday, arguing that their ruling last month in favour of releasing Atalay was unconstitutional. "The Court of Cassation (Yargitay) has committed a crime by not recognising the Constitutional Court decision. He called for compliance with the Constitutional Court ruling and said the Yargitay appeals court judges should be put under investigation. The Istanbul Bar Association said on Thursday it had filed a criminal complaint against the Yargitay judges involved in the case on the grounds of misconduct and "depriving a person of liberty". Rule of law, predictability and trust are fundamental for investors and Turkey’s record in this front was and still is miserable."

Persons: Erkan, Sera Kadigil, Ahmet Sik, Umit, Osman, Tayyip Erdogan, Ozgur Urfa, Erdogan, Mehmet Ucum, Mehmet Simsek, Central Bank Governor Hafize Gaye Erkan, Wolfango Piccoli, Daren Butler, Alex Richardson Organizations: Workers ' Party of Turkey, Turkish, REUTERS, Rights, Constitutional, Cassation, Twitter, Istanbul Bar Association, Central Bank Governor, Ece, Thomson Locations: Ankara, Turkey, Rights ANKARA, Istanbul

☆ Turkey's central bank hikes key interest rate to 35%
▼ + stars: | 2023-10-26 | by ( Jenni Reid | ) www.cnbc.com time to read: +1 min

Turkish Central Bank Governor Hafize Gaye Erkan answers questions during a news conference for the Inflation Report 2023-III in Ankara, Turkey on July 27, 2023. Turkey's central bank on Thursday hiked its key interest rate from 30% to 35%, in an ongoing bid to rein in inflation. The turnaround began in June, when Turkey's President Recep Tayyip Erdogan — who spearheaded the controversial policy stance — appointed former Wall Street banker Hafize Gaye Erkan as new central bank governor. The key interest rate has been hauled up from 8.5% since then, and economists argue it needs to go further. Inflation is forecast by the central bank to reach just over 60% by the end of 2023, while the Turkish lira has plummeted, making imports more expensive.

Persons: Turkish Central Bank Governor Hafize Gaye Erkan, Recep Tayyip Erdogan —, —, Hafize Gaye Erkan Organizations: Turkish Central Bank Governor, Reuters, Wall Street Locations: Ankara, Turkey, Turkey's

A logo of Turkey's Central Bank is pictured at the entrance of its headquarters in Ankara, Turkey October 15, 2021. The bank's policy committee repeated it is ready to raise rates further as needed to curb inflation, which climbed to an annual rate of 61.53% in September and is expected to rise into next year. It has weakened some 70% in two years, largely due to President Tayyip Erdogan's long-standing opposition to high rates and influence over the central bank. Erdogan chose former Wall Street banker Hafize Gaye Erkan as central bank chief after his May re-election. She has led a policy U-turn to relieve an economy strained by depleted FX reserves and surging inflation expectations.

Persons: Cagla, Tayyip Erdogan's, Erdogan, Hafize Gaye Erkan, Daren Butler, Jonathan Spicer Organizations: Turkey's Central, REUTERS, Rights, Wall Street, Thomson Locations: Ankara, Turkey, Rights ISTANBUL

Turkey still has $2.5 billion earmarked in its budget for issuance this year - but could possibly go further than that, JPMorgan's Weiler told Reuters. Markets are expecting Turkey to come to market within days, though some are pointing to a country ratings review by S&P Global Ratings scheduled for Friday. Domestic appliance maker Arcelik last week became the first Turkish corporate to launch an international bond since January 2022. September is generally a busy month for emerging market issuers, though adding to the momentum was increasing risk appetite from investors, he said. Reporting by Karin Strohecker and Jorgelina do Rosario in London; Editing by Jacqueline WongOur Standards: The Thomson Reuters Trust Principles.

Persons: Stefan Weiler, Tayyip Erdogan, JPMorgan's Weiler, Weiler, Erdogan, Mehmet Simsek, Hafize Gaye Erkan, Fitch, " Weiler, Karin Strohecker, Jacqueline Wong Organizations: JPMorgan, Reuters, Wall Street, Turkiye, . Treasury, Thomson Locations: Ankara, Turkey, Africa, Rosario, London

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

ANKARA, Turkey (AP) — Turkish President Recep Tayyip Erdogan, long a proponent of cutting interest rates, now supports his advisers’ economic plan that includes raising rates, a member of his economic team said Thursday. In a theory that runs contrary to traditional economic thinking, Erdogan has long pressured Turkey's central bank governors to lower rates. After winning reelection in May, however, Erdogan appointed a new economic team, including two accomplished bankers, signaling a turn to more conventional policies. Political Cartoons View All 1146 ImagesIn recent years, Erdogan fired three central bank governors for failing to fall in line with his rate-cutting policies. "We will continue with the tightening process with all our means until we reach a significant improvement in inflation," Erkan said.

Persons: Recep Tayyip Erdogan, Erdogan, ”, Mehmet Simsek, Merrill Lynch, Hafize Gaye Erkan, Erkan, “ Organizations: Bank Locations: ANKARA, Turkey, Turkish, San Francisco

☆ Turkey's economic team in Russia as Erdogan meets Putin -source
▼ + stars: | 2023-09-04 | by ( ) www.reuters.com time to read: +1 min

Turkey's Finance Minister Mehmet Simsek speaks during the 66th General Assembly of Turkish Banks Association in Istanbul, Turkey August 17, 2023. REUTERS/Murad Sezer/File Photo Acquire Licensing RightsANKARA, Sept 4 (Reuters) - Turkey's top economic policymakers are visiting Russia for meetings on Monday, a source said, travelling along with President Tayyip Erdogan who will meet Kremlin chief Vladimir Putin to discuss Black Sea grain exports. When the leaders meet later on Monday, Erdogan aims to convince Putin to return to a Ukraine grain-export deal that helped ease a global food crisis. It has opposed Russia's invasion of Ukraine while also opposing Western sanctions on Moscow and has advanced economic cooperation with Russia since the invasion early last year. Since June, Simsek and Erkan have moved to roll back regulations, partly free up the currency and launched an aggressive rate-hiking cycle.

Persons: Mehmet Simsek, Murad Sezer, Tayyip Erdogan, Vladimir Putin, Hafize Gaye Erkan, Erdogan, Putin, Simsek, Orhan Coskun, Jonathan Spicer, Daren Butler Organizations: Turkey's, General Assembly, Turkish Banks Association, REUTERS, Rights, Kremlin, Turkish, NATO, Thomson Locations: Istanbul, Turkey, Rights ANKARA, Russia, Russian, Sochi, Simsek, Ukraine, Moscow, Kyiv, UAE, Gulf

Turkey's Central Bank headquarters is seen in Ankara, Turkey in this January 24, 2014 file photo. Yet five foreign investors told Reuters that this week's rate hike signalled a new independence among policymakers who are serious about addressing unrelenting pressure on the currency and reining in inflation expectations. "It feels like they are correcting the mistakes they made with their first rate hike decisions," said Viktor Szabo, portfolio manager at abrdn in London. Erdogan, who has fired four central bank chiefs in four years, has said little about the rate hikes. Reuters GraphicsTurkish stock, Eurobond and CDS markets are more attractive targets this year and next, especially after the rate hike, investors and officials say.

Persons: Umit, Erdogan's unorthodoxy, Mehmet Simsek, Goldman Sachs, Tayyip Erdogan's, Viktor Szabo, Ola El, Van Eck, ERDOGAN, Erdogan, Simsek, Hafize Gaye Erkan, Cevdet Yilmaz, Blaise Antin, TCW, Kaan, Neuberger Berman, Jonathan Spicer, Marc Jones, Jorgelina, Hugh Lawson Organizations: Turkey's Central Bank, Finance, Goldman, Reuters, abrdn, Emerging Markets, Wall Street, JPMorgan, Reuters Graphics, CDS, Yeni, United Nations, International Monetary Fund, Thomson Locations: Ankara, Turkey, ANKARA, LONDON, New York, London, Van, Los Angeles, Reuters Graphics Turkish, Yeni Safak, Morocco, Japan, Singapore, Hong Kong, Istanbul, Rosario

☆ Dollar rises ahead of Jackson Hole gathering
▼ + stars: | 2023-08-24 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +4 min

"But the reaction to them was pretty muted overall, suggesting the Jackson Hole symposium is the main thing on the markets' mind," he said. Elsewhere, the Turkish lira rallied to a 2-month high against the dollar, up about 6% to 25.55 against the dollar after the Turkish central bank hiked the 1-week repo from 17.5% to a much-higher-than expected 25%. According to the median estimate in a Reuters poll, economists were expecting the policy rate to increase to 20%. Turkey's central bank embarked on a tightening cycle in June after President Tayyip Erdogan appointed former Wall Street banker Hafize Gaye Erkan as governor. The dollar was 0.7% higher against the yen , not far from the 9-month high 146.565 touched last week.

Persons: Dado Ruvic, Jerome Powell's, Jackson, Stuart Cole, Powell, Cole, Patrick Harker, Susan Collins, Tayyip Erdogan, Hafize Gaye Erkan, Piotr Matys, Saqib Iqbal Ahmed, Joice Alves, Tom Westbrook, Ankur Banerjee, Angus MacSwan, Andrea Ricci, Nick Zieminski Organizations: REUTERS, Jackson, Equiti, Federal Reserve, Philadelphia Fed, Boston Fed, U.S, Turkish, Wall Street, Touch Capital, Bank of England, Thomson Locations: London, Europe, Turkish, British

☆ Dollar rises ahead of Jackson Hole, Turkish lira rallies
▼ + stars: | 2023-08-24 | by ( Joice Alves | ) www.reuters.com time to read: +3 min

REUTERS/Dado Ruvic/Illustration/file photo Acquire Licensing RightsLONDON, Aug 24 (Reuters) - The dollar rose on Thursday as investors awaited for U.S. job data ahead of the Federal Reserve's Jackson Hole symposium, while the Turkish lira rallied after a larger-than-expected central bank rate hike. Investors were cautious after softer-than expected data in Europe and the U.S. muddied the economic outlook sending the safe-haven dollar higher. "As the Jackson Hole symposium gets under way, market participants are looking for direction," said Isabel Albarran, Investment Officer at Close Brothers Asset Management. MORE COULD COMEElsewhere, the Turkish lira rallied, up 3% to 26.4040 against the dollar after the Turkish Central Bank hiked the 1-week repo from 17.5% to a much-larger-than expected 25%. Turkey's central bank embarked on a tightening cycle in June after President Tayyip Erdogan appointed former Wall Street banker Hafize Gaye Erkan as governor.

Persons: Dado Ruvic, Jackson, Jerome Powell, Isabel Albarran, Tayyip Erdogan, Hafize Gaye Erkan, Piotr Matys, Moh Siong Sim, China's, Joice Alves, Tom Westbrook, Ankur Banerjee, Angus MacSwan Organizations: REUTERS, Federal, Turkish, U.S, Investors, Investment, Asset Management, Turkish Central Bank, Wall Street, Touch Capital, British, Bank of England, PMI, Singapore, Thomson Locations: Europe, London

☆ Turkey shocks with big rate hike to 25% to cool raging inflation
▼ + stars: | 2023-08-24 | by ( ) edition.cnn.com time to read: +2 min

Turkey’s central bank hiked its key interest rate by a surprisingly large 7.5 percentage points to 25% Thursday, signaling a new determination to address rebounding inflation as part of a broader policy U-turn. The poll, conducted last week, showed that interest rates were not expected to rise to 25% until the end of the year. The rate hike “sends a very strong signal that the [bank] is determined to rein in inflation and the initial market response is very positive,” said Piotr Matys, senior FX analyst at In Touch Capital Markets. Erdogan’s past drive to slash interest rates sparked a currency crisis in late 2021 and sent inflation above 85% last year. The currency is down about 68% in two years largely due to Erdogan’s previously outspoken opposition to high rates and influence over the central bank.

Persons: Tayyip Erdogan, ”, Piotr Matys, “, Erdogan, ” Erdogan, Hafize Gaye Erkan, — Osman Cevdet Akcay, Fatih Karahan, — Organizations: Analysts, Touch, Wall Street

The surprise move leaves the policy rate at its highest level since 2019, and sent the Turkish currency to its strongest level since mid-July. The bank has raised its one-week repo rate (TRINT=ECI) by 1,650 basis points since June. The lira had touched new all-time lows almost daily in recent weeks, including in the minutes before the policy decision. The central bank said that rising oil prices and a deterioration in inflation expectations suggests that inflation will end the year at the upper bound of its forecasts. The central bank has also selectively tightened credit.

Persons: Tayyip Erdogan, Piotr Matys, Dado Ruvic, Erdogan, Hafize Gaye Erkan, Osman Cevdet Akcay, Fatih Karahan, Hatice, Ezgi Erkoyun, Christina Fincher, Angus MacSwan Organizations: Analysts, Istanbul bourse, Touch, Turkey Lira, REUTERS, Wall Street, Thomson Locations: ISTANBUL, Istanbul, Ankara

☆ Take Five: Summer at Jackson Hole
▼ + stars: | 2023-08-18 | by ( ) www.reuters.com time to read: +5 min

REUTERS/Jason Reed Acquire Licensing RightsLONDON, Aug 16 (Reuters) - It's summer camp season and not to be left out, U.S. rate setters and overseas pals gather in Jackson Hole, Wyoming, to talk central banking. U.S. Federal Reserve officials (plus friends from the ECB, BoE and BOJ) descend on Jackson Hole, Wyoming on Aug. 24-26 for their annual central bank confab. Inflation remains sticky in places and investors want to know how long it will take for central banks to switch to easing. European PMIs could provide a bigger signal on whether the European Central Bank will hike again in September and if the Bank of England opts for a big rate increase. Turkey's central bank is poised to raise rates on Thursday for the third time in a row since Hafize Gaye Erkan was appointed as governor in early June.

Persons: Jason Reed, Ira Iosebashvili, Li Gu, Yoruk, Rosario, Marc Jones, Rachel Savage, BoE, Jackson, Vladimir Putin, Hafize Gaye Erkan, Erkan, Tayyip Erdogan, Dhara Ranasinghe, Stephen Coates Organizations: U.S . Federal, REUTERS, U.S . Federal Reserve, ECB, Nvidia, CARE, HK, China, European Central Bank, Bank of England, West, Reuters, Thomson Locations: Washington, U.S, Jackson Hole , Wyoming, China, Ira, New York, Shanghai, Amsterdam, Jorgelina, London, Johannesburg, confab, CHINA, Beijing, United States, European, Brazil, Russia, India, South Africa, Saudi Arabia, Argentina, Egypt, Turkey

The sustained inflationary pressure, driven by a lira drop and tax hikes, comes as President Tayyip Erdogan's new finance minister and central bank chief orchestrate a policy U-turn including interest rate hikes that are expected to slow domestic demand. But in the meantime the U-turn has hammered the currency and left authorities asking already-stretched households for patience. In July, consumer prices soared nearly 10% sequentially due to tax hikes and a lira crash. This month, forecasts by five economists show them rising between 5.5% and 8.5%, with fallout from mid-July tax hikes lagging into August. After years of divergence with market expectations, the central bank matched those last month when it raised its end-2023 annual inflation forecast to 58.0% from a previous 22.3%.

Persons: Erdogan, Tayyip Erdogan's, Hafize Gaye Erkan, Erdogan's, Erkan, Mehmet Simsek, Moody's, Daren Butler, Jonathan Spicer, Toby Chopra Organizations: Turkish Statistical Institute, Thomson Locations: Erdogan ANKARA, Istanbul, Turkey's

A logo of Turkey's Central Bank is pictured at the entrance of its headquarters in Ankara, Turkey October 15, 2021. According to calculations by five bankers, obtained by Reuters, net reserves rose $4.9 billion to $15.8 billion last week, while total reserves climbed to $115.6 billion. The recent uptrend in reserves reversed in the week to July 28, with net forex falling $2.8 billion to $10.89 billion. The central bank continues to get foreign exchange from tourism and a scheme to protect lira bank deposits from depreciation known as KKM. The bank has paid an estimated 300 billion lira ($11 billion) to cover depreciation costs under the scheme in June and July, with the cost in August estimated at 350 billion lira.

Persons: Cagla, Tayyip Erdogan, Erdogan, Hafize Gaye Erkan, Nevzat Devranoglu, Orhan Coskun, Daren Butler, Jonathan Spicer, John Stonestreet Organizations: Turkey's Central, REUTERS, Reuters, Bankers, Thomson Locations: Ankara, Turkey, ANKARA

☆ Turkey's Erdogan appoints three deputy governors to central bank
▼ + stars: | 2023-07-27 | by ( ) www.reuters.com time to read: +2 min

[1/2] Turkish President Tayyip Erdogan addresses supporters at the Presidential Palace after his victory in the second round of the presidential election, Ankara, Turkey, May 29, 2023. REUTERS/Umit Bektas/File PhotoISTANBUL, July 28 (Reuters) - Turkish's President Tayyip Erdogan named three deputy governors to the central bank, the country's official gazette said early on Friday, hours after the bank vowed to continue gradual monetary tightening and raised its end-2023 inflation forecast. Osman Cevdet Akcay, Fatih Karahan and Hatice Karahan were appointed as deputy central bank governors, according to a decision published in the official gazette. On Thursday, Turkey's central bank raised its end-2023 inflation forecast sharply to 58% and said it would continue monetary tightening. In what is seen as a pivot to economic orthodoxy, Erdogan appointed Mehmet Simsek as finance minister and Erkan as central bank governor shortly after his re-election in May.

Persons: Tayyip Erdogan, Umit, Osman Cevdet Akcay, Fatih Karahan, Hatice Karahan, Yapi, Hafize Gaye Erkan, Erdogan, Mehmet Simsek, Emrah Sener, Taha Cakmak, Mustafa Duman, Ezgi Erkoyun, Leslie Adler, Jamie Freed Organizations: REUTERS, Federal Reserve Bank of New, Amazon, Thomson Locations: Ankara, Turkey, ISTANBUL, Federal Reserve Bank of New York, Turkey's

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