The largest bank in the US, JP Morgan, has published a notable assessment note regarding the resignation of Hafize Gaye Erkan from the Central Bank (CBRT) and the appointment of Fatih Karahan in her place.
According to the report in Sözcü; the note stated, "We view the change in the CBRT governor as positive for disinflation and the Turkish Lira, as we think the Monetary Policy Committee is now likely to be more hawkish."
In the note signed by the bank's economist Fatih Akçelik, it was stated, "Since monetary policy is likely to be more sensitive to the inflation outlook in the coming period, we expect interest rates to remain high for longer."
The note also indicated that it is likely that Karahan will increase coordination between monetary policy and fiscal policy to combat inflation.
On the other hand, the note also emphasized that uncertainty regarding the tenure of the CBRT governor persists and continues to cause doubt regarding policy changes.
News Source: 12punto
