As part of its monetary policy recommendations to Ankara, the International Monetary Fund advised Turkey to raise interest rates in order to lower the country’s excessive cash inflation, which exceeded 85.50 percent.
The Turkish central bank’s independence should be strengthened, and the interest rate should be raised, according to the International Monetary Fund, which also stressed that these actions will assist push inflation toward a fall more strongly and support the gradual rebuilding of reserves.
In its evaluation, the IMF indicated that the strict fiscal policy will also help when developing high inflation and increasing financial risks, explaining that if these policies are established, the overall precautionary and regulatory measures must be canceled, including foreign currency deposits, so that the government can from Play a more limited role in the financial markets and allocating credit.
Author: “Time.”
Turkey is advised by the International Monetary Fund to increase interest rates.
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