Turkey's new central bank chief pitched a comprehensive monetary policy in her first formal address to the media while her acknowledgment of stark inflation pressures was welcomed by foreign investors.
Laying out her philosophy in her debut news conference, Hafize Gaye Erkan pledged that her holistic approach would - in addition to interest rate hikes - make use of a range of levers and macroprudential policy tools, potentially including curbs on loan growth in key sectors or credit card spending.
"That's the buzzword - holistic," said Kaan Nazli, a portfolio manager at asset manager Neuberger Berman, who noted her emphasis on a slowdown in domestic loan growth - a lever to tighten policy outside the lifting of lending rates. who returned to head Turkey's Finance Ministry after the election. Both are expected to tackle economic strains that have sent the lira to consecutive record lows, embedded double-digit inflation and vaporised tens of billions of dollars of foreign exchange reserves.
While a "holistic" approach sounded nice, said Ash, it was "really just a sanitised and alternative word for "unorthodox".There was broad agreement among investors that Erkan is facing an uphill struggle with her strategy unlikely to deliver a swift pivot towards economic orthodoxy after years of Erdogan pushing for lower interest rates as a remedy for high inflation.
Unlike some of her predecessors, Erkan chose to answer all the questions at the news conference herself, rather than defer them to her colleagues, switching easily between Turkish and English during the live event.She swerved politically charged questions on the influence of Erdogan's government on monetary policy making - a thorny issue for the nation of 85 million where many are reeling under a cost of living crisis.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Cyprus, Turkey and the importance of teaching real historyGuest Keith Peterson in dailyherald: A story from Cyprus that shows why teaching accurate American history is so important.
Les mer »
US Senator Menendez says he has not changed opposition to Turkey F-16 saleU.S. Senator Bob Menendez said on Wednesday he still had concerns about the sale of F-16 fighter jets to Turkey, and had not changed his hold on the sale of the aircraft.
Les mer »
I got cheap ‘mom makeover’ surgery in Turkey and it ruined my bodyFour months on from the procedures, the mom-of-six says her swelling has not subsided and she is still struggling with “horrific” pain.
Les mer »
Turkey is becoming a major hub for cocaine trafficking to EuropeAnkara’s reputation for smuggling is not new, and its portfolio in facilitating the free flow of illicit goods is growing to include drugs. Following Russia’s invasion of Ukraine in 2022, Turkey was implicated in questionable practices that included the alleged purchase of stolen Ukrainian grains,…
Les mer »
“We Deserve to Have Fun”: The Women Going All Out for “Barbie”We’re thinking critically, but still want to party
Les mer »