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.
