Turkey has another new central bank leader. Here's what it means for the battered economy

Turkey has seen its fifth central bank leader depart in as many years as Hafize Gaye Erkan, the first woman in the top role, stepped down after just eight months in the job

ISTANBUL -- Turkey has seen its fifth central bank leader depart in as many years as Hafize Gaye Erkan, the first woman in the top role, stepped down after just eight months in the job.

She announced her resignation late Friday after recent claims of nepotism emerged in local media, allegations that Erkan, a former senior Goldman Sachs executive, strongly rejected.

While President Recep Tayyip Erdogan has previously fired central bank governors who spurned his unorthodox belief in keeping interest rates low to fight inflation — which runs contrary to mainstream economic thinking — Erkan has blamed a “major reputation assassination campaign.”

Her replacement, Deputy Governor Fatih Karahan, indicates that Turkey will maintain higher interest rates overseen by Finance Minister Mehmet Simsek.

A series of rate hikes after Erdogan was reelected in May has marked a turnaround from his unconventional policies that economists say helped trigger a currency crisis and drove up the cost of living, leaving households struggling to afford basic goods.