The new Turkish Central Bank Governor adopts strict monetary policy to "reduce inflation"

Shafaq News/ The newly appointed governor of the Central Bank of the Republic of Türkiye (CBRT), Fatih Karahan, stressed on Sunday the commitment to bring down inflation and keep the required monetary restraint to reach the desired drop in consumer price levels.

Karahan said in a statement published by the CBRT, "We are determined to maintain the necessary monetary tightness until inflation falls to levels consistent with our target."

On Saturday, Türkiye President Recep Tayyip Erdoğan named Fatih Karahan as the new CBRT chief, following the resignation of Hafize Gaye Erkan over accusations of abuse of authority and family meddling in the affairs of the financial institutions.

Hafize Gaye Erkan, who became the central bank governor in June, was the first woman to hold the position. She declared her resignation on social media platform X late Friday, saying she faced a "smear campaign" and would quit to protect her family from more distress.

Furthermore, Treasury and Finance Minister Mehmet Şimşek, who said soon after Erkan's resignation that her "choice was completely personal and voluntary," showed Sunday the backing for the new governor and willingness to help the disinflation process.

Meanwhile, some of the banks and analysts who commented on the new central bank head's appointment conveyed the expectations that the policy framework would continue in the same direction under Karahan.