Istanbul | AFP
Turkish Central Bank Governor Hafize Gaye Erkan says the runaway price rise has forced her to return to her parents' home, something common among young Turks but not so much for a former Wall Street chief executive.
“We couldn’t find any accommodation in Istanbul. It's terribly expensive. We settled in my parents’ house,” Hafize told the Turkish newspaper Hürriyet.
The governor, the first woman to head the institution, took office in early June, following the reelection of President Recep Tayyip Erdogan.
The 44yearold banker lived in the USA for two decades and held responsible positions at several major banks, including Goldman Sachs.
“Is it possible that Istanbul has become more expensive than Manhattan?” he asks.
According to a study by Bahçesehir University, inflation in Turkey reached 62% yearonyear in November, driven in particular by the devaluation of the Turkish lira, and rental prices increased by 77.1% in Istanbul over the same period.
To curb inflation, the Turkish central bank has increased its interest rate from 8.5% to 40% since June.
“We are reaching the end of the monetary tightening measures,” said the central bank governor.
Faced with protests from tenants who were threatened with rising prices, the Turkish government limited the review of apartment rents to 25%.
According to experts, this measure only increased tensions and led to several owners trying to get rid of their tenants, sometimes using fraudulent means, in order to rerent their properties at even more expensive prices.