Turkey should continue tight monetary policy until inflation reaches target, IMF says Reuters

ISTANBUL (Reuters) – The International Monetary Fund has called for the continuation of tight, data-driven monetary policy in Turkey until inflation reaches its target, after concluding an Article IV consultation.

Higher interest rates since June last year have reduced economic imbalances and revived confidence, the IMF said on Saturday, adding that improved market sentiment had prompted foreign and domestic investors to turn to sterling-denominated assets.

The central bank raised its key interest rate to 50% from 8.5% to combat high inflation. The government raised taxes and some fees to boost revenue while implementing fiscal measures to balance risks in the economy.

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