Turkish Central Bank (CBRT) Governor Hafize Gaye Erkan said that she moved in with her mother due to high rents in Istanbul in an interview she made with journalist Ahmet Hakan.
Erkan spoke about the problem of rent increases, inflation and the cost of living. “Citizens have tightened their belts enough,” Erkan said, adding that monetary tightening should be maintained for a while longer.
Pointing out to rental housing problem in big cities “One person should not have 10 houses, 10 people should have one house. Housing and food are very important. It has been a long time since our government solved the health issue. How can Istanbul be more expensive than Manhattan? We couldn’t find a house in Istanbul, it is so expensive. We settled with my parents, we are staying with them” Erkan said.
CBRT Governor pointed to 2026 for single digit inflation: “We need time for rents to fall further behind inflation. All this shows that monetary policy is starting to work. We will see a slowdown in price increases in service groups such as transportation and food by the end of 2024. It will be a little slower in groups such as rent and education. We will see single digits in inflation in 2026. Our end-2025 target is 14 percent.”
Lack of supply and cheap financing can deteriorate the balance time to time Erkan says and adds: “Our most important problem is the supply of social housing.”
CBRT Governor Erkan, has a gross salary of TRY 161.000 (USD 5.555) excluding additional payments. The minimum wage on the other hand is TRY 11.402 (USD 393).
Erkan’s comments on rents drew the reaction of economists. Prof. Dr. Ozgür Demirtas also commented on the issue. Demirtas on his X post said, “Someone who earned millions of dollars in his position in the US can afford a house. There is something I don’t understand.”
Erkan also stated that she asked their apartment clerk about the market prices. “I often ask Mr. Sadik our apartment clerk about the prices. I say the prices our down, he says not and tells me to go and check the prices of onions. she said.