On Friday evening, Moody’s International raised Turkey’s credit rating two notches at once from “B3” to “B1” and maintained its future outlook at “positive.”
The agency said in a statement that the main motivation for raising Turkey’s credit rating to “B1” was developments in the management of the economy, especially the increasingly firm and firm return to conventional monetary policy.
The statement indicated that this yielded the first clear results in terms of reducing the major imbalances in Turkey’s macroeconomics.
It added: “The decline in inflation and domestic demand has begun to give us more confidence that inflationary pressures will decrease significantly in the coming months and until 2025.”
The statement stressed that the Turkish Central Bank quickly increased the credibility of its monetary policy, which helped restore confidence in the Turkish lira.
It stressed that the tough political stance significantly reduced Turkey’s high external fragility, and that the positive expectations reflect the rising balance of risks.
