The IMF's proposal for the minimum wage in Turkey will spark significant debate.

The Director of the International Monetary Fund (IMF) European Department, Alfred Kammer, stated that they have been quite positively affected by the policy changes in Turkey since last year, expressing that it would be too early to reduce the restrictiveness of monetary policy. A press conference regarding the economies of the European region was held as part of the annual meetings of the IMF and the World Bank.

"WE HAVE BEEN AFFECTED BY THE POLICY CHANGE IN TURKEY"

In response to a question about the Turkish economy, Kammer said, "We have been quite positively affected by the policy change in Turkey since last year." Indicating that the vulnerability to crisis risk has significantly decreased during this period as a result of the policy change, Kammer noted that inflation is now also on a downward trend. Kammer stated that these are two major successes achieved in the policy change.

Kammer, who noted that the fight against inflation has "not yet been won," said, "This means that tight monetary policy needs to be maintained and it would be too early to reduce the restrictiveness of monetary policy."

"MINIMUM WAGE SHOULD BE DETERMINED ACCORDING TO FUTURE INFLATION"

Kammer continued to recommend focusing on income policies, stating that one of the issues related to inflation in Turkey is minimum wage increases based on past inflation developments. He expressed that minimum wage agreements should now be made once a year and addressed with a forward-looking approach, thus preventing the second-round effects of these measures. Kammer also mentioned that further fiscal adjustments could be made, stating, "Fiscal adjustment will help with inflation and always increases the credibility of the adjustment effort." Alfred Kammer said, "Overall, I must say that the economic team in Turkey has done a good job. This work needs to continue, and these policies need to be maintained. It is a painful period for the people of Turkey and a difficult time for policymakers, but this is necessary to reduce crisis risk and lower inflation."