The former head of Wall Street was appointed head of the Central Bank of Turkey
World
Hafize Gaye Erkan, former executive director of First Republic Bank and managing director of Goldman Sachs, will become the first woman to head the Central Bank of Turkey. Economists expect that Ercan will be able to reduce the high rates of inflation, which in May amounted to 40 percent.
Re-elected Turkish President Recep Tayyip Erdoğan on Friday appointed former Wall Street executive Hafize Gaye Erkan as governor of the country's central bank. She took up this post after Şahapğlu, who cut rates, despite the fact that central banks around the world were doing the opposite to combat inflation.
In May, the inflation rate in Turkey dropped below 40 percent for the first time in 16 months. Analysts say investors are interested not so much in the talent of the new economic team as in its ability to withstand pressure from Erdogan, who once called high rates "the mother and father of all evil."
"Simsek [the new head of the Turkish Finance Ministry] and Erkan [the new head of the Central Bank of Turkey] will be judged by the steps of monetary policy, inflation and the lira," emerging markets economist Timothy Ash wrote on Twitter.
In May, the inflation rate in Turkey dropped below 40 percent for the first time in 16 months. Analysts say investors are interested not so much in the talent of the new economic team as in its ability to withstand pressure from Erdogan, who once called high rates "the mother and father of all evil."
"Simsek [the new head of the Turkish Finance Ministry] and Erkan [the new head of the Central Bank of Turkey] will be judged by the steps of monetary policy, inflation and the lira," emerging markets economist Timothy Ash wrote on Twitter.
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