The International Monetary Fund (IMF) has recommended that Turkey continue its strict, data-driven monetary policy until inflation aligns with the country’s target, following an Article IV consultation. In a statement released on Saturday, the IMF highlighted that Turkey’s recent policy shift has helped mitigate economic imbalances and restored investor confidence.
The IMF noted that improved market sentiment has encouraged both foreign and domestic investors to increase their holdings of lira-denominated assets, signaling a positive shift in Turkey’s economic outlook. However, the central bank must remain vigilant and committed to ensuring that disinflation—the process of reducing inflation—stays on course to meet the desired targets.
The IMF’s executive board emphasized that maintaining a tight monetary stance is crucial for stabilizing inflation and achieving long-term economic growth. This policy approach is seen as essential for safeguarding Turkey’s financial health and ensuring that inflation trends in the right direction.
