(CTN News) – The exorbitant inflation rates in Turkey have forced the newly appointed head of the country’s central bank, Hafize Gaye Erkan, to abandon her plans to purchase a property in Istanbul.
Despite her extensive experience in finance, including working at prestigious institutions like Goldman Sachs and First Republic Bank, Erkan has been priced out of the city’s property market. Consequently, she has been compelled to move back in with her parents.
In an interview Inflation with the Hurriyet newspaper,
the 44-year-old expressed her frustration, stating that finding a home in Istanbul has become an incredibly costly endeavor.
Erkan, who returned to Turkey in June after spending two decades in the United States, is now experiencing firsthand the steep rise in housing prices that has left many young individuals struggling to secure accommodations Reflecting on the situation, she even questioned whether Istanbul had become more expensive than Manhattan.
In November, the year-on-year inflation rate reached 61 percent, a result of President Recep Tayyip Erdogan’s decision to allow the lira currency to weaken.
To address the long-standing economic crisis, Erdogan promised to assemble a team of economists with Wall Street experience.
In an attempt to alleviate public discontent, officials imposed a 25 percent cap on rent increases. However, experts argue that this measure has exacerbated housing tensions, leading some landlords to unlawfully evict tenants to set higher rents.
To curb inflation, the central bank raised benchmark lending rates to 40 percent last month. Erkan, a spokesperson, stated that they are approaching the conclusion of their monetary tightening measures.