Turkey's new central bank chief assures that work to combat inflation will press on

Turkey's new central bank chief says the work to tame inflation — namely through interest rate hikes — will continue “with determination.”

ANKARA, Turkey -- The work to tame inflation in Turkey — namely through interest rate hikes — will continue “with determination,” the country’s new central bank chief said Thursday, offering some certainty about efforts to right the battered economy following his precedessor's surprise resignation.

Speaking for the first time since taking the helm of the central bank on Saturday, Fatih Karahan, a former senior Goldman Sachs executive, said he expects inflation to drop considerably over this year and next.

Karahan, who had been the bank's deputy governor, was part of a new team led by Finance Minister Mehmet Simsek that have been tackling the country’s economic woes through higher borrowing costs.

“We will continue our efforts to establish disinflation with determination. The duty of the central bank is to ensure and maintain price stability,” Karahan told reporters in Turkey’s capital, Ankara.

Karahan replaced Hafize Gaye Erkan, who took over as the bank’s first female chief in June. She announced her resignation on social media platform X, formerly Twitter, late Friday, saying she was a victim of a “character assassination campaign” and would resign to spare her family further anguish.