Turkish President Erdogan Appoints New Deputies Of Central Bank Governor

Shafaq News/ On Friday, Turkish President Recep Tayyip Erdogan issued a presidential decree dismissing three deputies of the Central Bank's governor.

According to the decree published in the Turkish Official Gazette today, Fatih Karahan, Cevdet Akcay, and Hatice Karahan have been appointed as new deputies to Governor Hafize Gaye Erkan. They will replace Emrah Sener, Taha Cakmak, and Mustafa Duman on the Monetary Policy Committee.

The changes come as the Central Bank of Turkey has revised its inflation forecast upward, seeking to enhance its credibility among investors and signaling a shift away from previous optimistic projections.

In recent months, under the leadership of new Governor Hafize Gaye Erkan, the central bank has reversed its policy and tightened monetary measures. The bank raised its policy rate by 900 basis points to 17.5% in just two meetings since Erkan's appointment.

On Thursday, the central bank sharply increased its end-2023 inflation forecast to 58%, reflecting the seriousness of the nation's economic challenges. The move comes as annual inflation reached 38.2% in June, prompting a need for decisive action to stabilize the economy.