IMF Europe Department Director Kammer expressed being impressed by the policy changes in Turkey and commended the economic team for their good work. He suggested that minimum wage agreements should be done annually. Kammer emphasized the need for a forward-looking approach in determining wages. A press conference on European region economies was held during the annual meetings of the International Monetary Fund (IMF) and World Bank. When asked about the Turkish economy, IMF Europe Department Director Alfred Kammer stated, “We have been very positively impressed by the policy changes in Turkey over the past year.” Pointing out that as a result of policy changes, the vulnerability to crisis risk has significantly decreased during this period, Kammer also noted that inflation is now showing a downward trend. Kammer emphasized that these are two major successes achieved in policy changes. “INFLATION BATTLE HAS NOT BEEN WON YET” Kammer mentioned that the battle against inflation has not been won yet and said, “This implies that tight monetary policy needs to be maintained and it would be premature to reduce the restraint in monetary policy.” Kammer stated that they continue to recommend focusing on income policies, noting that one of the problems related to inflation in Turkey is minimum wage increases based on past inflation developments. MINIMUM WAGE PROPOSAL Kammer suggested that minimum wage agreements should now be made once a year and approached with a forward-looking perspective to prevent 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 enhances the credibility of adjustment efforts.” “ECONOMIC TEAM IS DOING A GREAT JOB” Alfred Kammer said, “Overall, I must say that the economic team in Turkey is doing a great job. This work needs to continue and these policies need to be sustained. It is a tough period for the people of Turkey and for policymakers, but it is necessary to reduce the risk of crisis and lower inflation.”