The newly appointed governor of the Central Bank of the Republic of Türkiye (CBRT), Fatih Karahan emphasized Sunday in a press note the determination to ensure disinflation and maintain the necessary monetary tightening to achieve the desired fall in levels of consumer prices.

"The main objective and priority for the CBRT is to achieve price stability. Relying on our strong team, we continue our efforts to ensure disinflation. We are determined to maintain the necessary monetary tightness until inflation falls to levels consistent with our target," the statement shared on the website of the central bank read.

"We will be watchful of inflation expectations and pricing behavior. We stand ready to act in case of any deterioration in the inflation outlook," it added.

The statement also included information on Karahan's appointment as new central bank chief early on Saturday following the resignation of Hafize Gaye Erkan, who announced on Friday she was stepping down citing "a major reputation assassination campaign" launched against her.

"With a Presidential Decree published in the Official Gazette No. 32449 dated February 3, 2024, Dr. Fatih Karahan, who had been acting as a Deputy Governor since July 28, 2023, was appointed as the Governor of the Central Bank of the Republic of Türkiye (CBRT)," the statement said.

Karahan, who started his career as an economist at the Federal Reserve Bank of New York in 2012 also lectured at Columbia University and New York University and served as principal economist in e-commerce giant Amazon before becoming Erkan's deputy at the central bank last July.

The new governor is set to hold a briefing on the first Inflation Report of 2024 on Thursday, Feb. 8 at 10:30 a.m. local time in Ankara, the central bank also said, in what is likely to be his first public appearance since taking the helm of the central bank.

Treasury and Finance Minister Mehmet Şimşek, who shortly after Erkan's resignation said her "decision was entirely personal and at her own discretion," expressed Sunday the support for the new governor and readiness to support the disinflation process.

"Today is the first day of our new Central Bank Governor. Once again, I would like to congratulate him on his appointment and wish him success in his new role. I look forward to working with the new governor and his competent team in implementing our economic program," Şimşek said in a post on X, formerly Twitter.

"We are committed to supporting the disinflation process through restoring fiscal discipline while also implementing structural reforms that would boost productivity and enhance Türkiye’s competitiveness. We will continue to do what it takes to get there," he added.

Under Erkan, the bank completed a series of interest rate hikes that have pushed the baseline rate from 8.5% to 45% to thwart inflation, which was close to 65% in December.

Other officials, including Vice President Cevdet Yılmaz, said the economic program would continue to be implemented with determination while thanking the former governor for her services during her tenure.

"The medium-term program, which has the president’s strong support, will continue to be implemented decisively," Yılmaz said earlier on X.

Some of the banks, as well as analysts commenting on the appointment of the new central bank chief, conveyed the expectations that the policy framework would continue in the same direction under Karahan.

"We expect the Central Bank to continue with a conventional monetary policy framework that prioritizes inflation. We will have a chance to listen to his (Karahan) policy messages during the inflation report presser," Morgan Stanley said in a note.

"We see the new Central Bank governor as positive for disinflation and lira ... We think that the reshaped Monetary Policy Committee is likely more hawkish," said investment bank JPMorgan.

"I do not think that the resignation of the central bank governor will have a negative impact," Agence France-Presse (AFP) quoted Ankara's TOBB University of Economics and Technology professor Fatih Özatay as saying.

"Moreover, this is a development that will take the pressure off the central bank."

Meanwhile, veteran emerging market (EM) analyst Timothy Ash called Karahan a "respected ex-NY Fed economist."