IMF official expresses approval of Turkey’s monetary policy

(MENAFN) Alfred Kammer, director of the European Department of the International Monetary Fund (IMF), expressed strong approval of Turkey’s stringent monetary policy aimed at curbing inflation. He noted that the IMF is “very positively impressed” by the significant change in monetary policy over the past year. Kammer highlighted two key results of this approach: a significant reduction in vulnerability to potential crises and a noticeable downward trend in inflation rates.

Despite these positive changes, Kammer warned that Turkey’s fight against inflation continues. He emphasized the need to maintain a restrictive monetary policy and warned that easing restrictions now would be premature. According to him, maintaining the current political position is crucial to consolidating the progress made.

Additionally, Kammer noted the importance of focusing on income policy to further counteract inflationary pressures. He considered the issue of linking the increase in the minimum wage with past inflation trends as an important factor influencing inflation in Turkey. He recommended that the structures of these agreements should be forward-looking, rather than based on historical data, to prevent second-round effects on inflation.

Kammer also argued for “greater fiscal adjustments,” which he said would not only help moderate inflation but also strengthen the credibility of Turkey’s economic reform efforts. He praised the Turkish economic team for its achievements so far and stressed the need for continued commitment to this policy. Recognizing the challenges facing society and policymakers during this difficult period, he reiterated the need to take these measures to reduce crisis risks and achieve lasting inflation control.