On Friday, the International Monetary Fund mission recommended the Turkish authorities to raise interest rates, early accompanied by moves to enhance the independence of the central bank.
According to Bloomberg News, such actions would aid in further lowering inflation rates and provide the chance to gradually reinstall the cash reserve.
If these policies are implemented and with the entrenches of inflation, the gradual disposal of the overall precautionary and organizational measures must be eliminated, including the deposits protected in foreign currencies, until the state plays a smaller role in the financial markets and in allocating credit.
It is noteworthy that this year’s inflation rate in Turkey exceeded 85%, exceeding estimates.
The International Monetary Fund advises Turkey to raise interest rates as soon as possible.
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