Turkey: Sixth Review and Inflation Consultation Under the Stand-By Arrangement and Request for Waiver of Nonobservance and Applicability of Performance Criteria: Staff Report; Staff Supplement; and Press Release on the Executive Board Discussion
IMF Staff Country Reports, November 16, 2007
Source details
- Canonical URL
- Turkey: Sixth Review and Inflation Consultation Under the Stand-By Arrangement and Request for Waiver of Nonobservance and Applicability of Performance Criteria: Staff Report; Staff Supplement; and Press Release on the Executive Board Discussion
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Bibliographic details
- Authors: Arrangement, Request
- Published: November 16, 2007
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451838220.002
Macroeconomic framework and policies
- The staff report explains the macroeconomic framework and monetary and exchange rate policies.
- High interest rates, slowing credit growth, and election-related uncertainty were expected to weigh on private domestic demand.
- Growth was expected to remain near its estimated long-term potential of 5 percent.
Monetary policy, exchange rate, and reserves
- The central bank renewed its commitment to building international reserves for prudential reasons.
- Monetary and exchange rate policies are a focal point of the report’s analysis.
Growth outlook and demand
- Private domestic demand was expected to be weighed down by:
- High interest rates
- Slowing credit growth
- Election-related uncertainty
- Aggregate growth projection cited: 5 percent (estimated long-term potential).
Fiscal policy and structural recommendations
- There was broad agreement on the need to ease labor regulations and taxes as fiscal resources permit.
- Policy emphasis: adjustment of labor regulations and tax measures conditional on available fiscal resources.
Subject coverage and keywords
- Subjects: Banking, Economic sectors, Expenditure, External debt, Health care spending, Monetary base, Money, Public debt, Public sector
- Keywords: bringing inflation, CR, debt ratio, Global, Health care spending, inflation outlook, inflation projection, ISCR, market participant, Medium-run inflation expectation, Monetary base, monetary policy, Public sector, social security institutions