S&P Global raised Turkey's long-term sovereign credit ratings to "BB-" from "B+" on Friday, its second upgrade from the credit ratings agency this year, citing reserve accumulation and disinflation due to tight monetary stance of the Turkish central bank.
In September, Turkey's annual inflation fell to 49.38%, standing below the central bank's policy rate for the first time since 2021 © Mena Today
S&P Global raised Turkey's long-term sovereign credit ratings to "BB-" from "B+" on Friday, its second upgrade from the credit ratings agency this year, citing reserve accumulation and disinflation due to tight monetary stance of the Turkish central bank.
"With no scheduled national elections until 2028, Turkish policymakers appear to have space to implement policies to compress demand and inflation, via gradual fiscal and incomes policy tightening," S&P said in a statement.
In September, Turkey's annual inflation fell to 49.38%, standing below the central bank's policy rate for the first time since 2021.
Turkey's central bank sees inflation falling to 38% at the end of this year and 14% in the following year, while the government anticipates end-2024 and end-2025 inflation of 41.5% and 17.5%, respectively.
The ratings agency said that further upgrades could occur if there is more progress in reducing inflation to single-digit levels and restoring long-term confidence in the Turkish lira and domestic capital markets.
Peer agencies Fitch and Moody's have also raised Turkey's ratings this year due to improved fiscal policy.
S&P also revised Turkey's outlook to "stable" from "positive" to reflect balanced risks to authorities' ambitious plans to bring down elevated inflation, manage wage expectations and rebalance the economy.
Reporting by Atharva Singh and Ezgi Erkoyun
President Tayyip Erdogan said he believed ties between Turkey and Azerbaijan could overcome all obstacles and he would visit Baku on November 8, after tensions in recent weeks between the historic allies over regional and domestic policies.
Turkish President Tayyip Erdogan said he wanted to speak to his Russian counterpart Vladimir Putin to discuss efforts to end the war in Ukraine, after talks with Ukrainian President Volodymyr Zelenskiy on Saturday.
Ankara rejected on Wednesday what it called the "prejudiced and unfair" stance of the European Union towards fundamental rights and the judiciary in Turkey, and regarding Cyprus, contained in the bloc's report on EU membership candidates.
To make this website run properly and to improve your experience, we use cookies. For more detailed information, please check our Cookie Policy.
Necessary cookies enable core functionality. The website cannot function properly without these cookies, and can only be disabled by changing your browser preferences.