Turkey’s central bank chief, Hafize Gaye Erkan, is facing housing challenges in Istanbul due to the soaring inflation that has priced her out of the property market. As a result, the 44-year-old, who assumed her position in June after two decades in the United States, is compelled to move back in with her parents, according to AFP reports.
In an interview with Hurriyet newspaper, Erkan, a former finance executive at Goldman Sachs and First Republic Bank, she expressed her frustration with the excessive housing costs in Istanbul. She raised a comparative question, wondering if Istanbul has become more expensive than Manhattan.
The country’s year-on-year inflation reached 61 per cent in November, as President Recep Tayyip Erdogan allowed the lira currency to weaken. Despite promises of a new team of economists with Wall Street experience addressing economic challenges, the housing crisis persists. To address public discontent, officials capped rent increases at 25 per cent, exacerbating tensions as property owners seek to oust occupants, sometimes through fraudulent means, to establish new and higher rents.
In response to the economic turmoil, the central bank increased benchmark lending rates to 40 per cent to curb inflation. Erkan acknowledged that they are approaching the conclusion of their monetary tightening measures, indicating ongoing efforts to stabilize the economic situation.
