FT News Briefing Turkey’s central bank chief steps down
Feb 5, 2024
Turkey’s central bank faces a leadership shake-up as the governor resigns amid political pressures, raising concerns about the nation’s economic future. The implications of this decision ripple through Turkey’s monetary policy under President Erdogan. Meanwhile, U.S. military strikes target Iran-backed militants, adding to geopolitical tensions. On the financial front, European banks grapple with profitability issues as interest rates rise, and key earnings reports loom, painting a challenging picture for the sector.
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Sudden Resignation of Turkey's Central Bank Governor
- Turkey's central bank governor, Hafize Gaye Erkan, abruptly resigned after less than a year.
- Her resignation followed rumors and press reports about her conduct.
Rumors Surrounding Erkan's Resignation
- Erkan's resignation was announced late at night after rumors circulated in the press.
- The rumors included allegations of giving her father an unofficial role and staff disagreements.
Erkan's Interest Rate Hike
- Erkan significantly increased interest rates from 8.5% to 45% during her term.
- This was a notable move given President Erdogan's long-standing opposition to high interest rates.