The new head of Turkey’s central bank said she has been priced out of Istanbul’s property market by rampant inflation.
Left with no choice, the former
finance executive has moved back in with her parents.
“We haven’t found a home in
Istanbul. It’s terribly expensive. We’ve moved in with my parents,” 44-year-old
Hafize Gaye Erkan, who took up her post in June after two decades in the United
States, told the Hurriyet newspaper.
Erkan previously worked at
firms including Goldman Sachs and First Republic Bank — and is now getting a
crash course in the soaring prices that have seen many young people struggling
to find lodgings.
“Is it possible that Istanbul
has gotten more expensive than Manhattan?” she said.
Tayyip Erdogan has allowed the
lira currency to weaken while promising that a new team of economists with Wall
Street experience would tackle years of economic crisis.
To quell growing anger,
officials also capped rent increases at 25 per cent — though experts say that
has only amplified the housing tensions, as owners try to push out occupants,
sometimes fraudulently, in order to set new and higher rents.
The central bank last month
pushed up benchmark lending rates to 40 per cent in a bid to get inflation
under control.
“We’re nearing the end of our
monetary tightening measures,” Erkan told the paper.
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