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IMF urges Turkey to pursue ‘sound’ economic policies
WASHINGTON, Sept 7, 2018 (BSS/AFP) – The International Monetary Fund on
Thursday urged Turkish authorities faced with a falling currency and surging
inflation to pursue “sound” economic policies to stabilize the situation.
However, the government in Ankara has not requested financial support from
the global crisis lender, spokesman Gerry Rice told reporters.
“We continue to monitor developments closely. Again, I want to be clear,
there has been no request from Turkey for an IMF financial program,” he said.
The crisis has hammered the nation’s currency, which has lost about 25
percent over the past month, and pushed inflation in August to a 15-year
high.
Rice said that “in light of ongoing market volatility we believe the
authorities would benefit from demonstrating a clear commitment to sound
economic policies.”
And a critical part of this is “to ensure the full operational
independence of the central bank to pursue its mandate of achieving price
stability.”
Investors fear President Recep Tayyip Erdogan — who has vocally
criticized interest rate policy — is pressuring the nominally independent
central bank not to raise rates in order to maintain growth.
BSS/AFP/HR/0945