Central Banks
New Turkish Central Banker Redraws Inflation Path But Not Policy
- Central bank more than doubles its year-end inflation forecast
- Governor Erkan defends tightening cycle she calls ‘gradual’
Source: Central Bank of Turkey/Anadolu Agency/Getty Images
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Turkey’s new central bank governor delivered a sobering assessment on inflation but pledged to stick with a “gradual” cycle of monetary tightening despite more than doubling the forecast for price gains.
At an event on Thursday that marked her public debut, Governor Hafize Gaye Erkan had the task of restoring the credibility of an institution in need of rehabilitation in the eyes of the markets after years of unconventional measures championed by President Recep Tayyip Erdogan.