Moody's raised Turkey's credit rating by two levels at once – from B3 to B1, and maintained the credit rating outlook as “positive”. Ukrinform reports this with reference to Turkish Finance Minister Mehmet Şimşek.
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Rating upgrade
“Moody's has raised our credit rating by two notches for the first time! Moody’s, which increased the credit rating of our country after 11 years thanks to the program we implemented, maintained a positive outlook,” the minister said.
According to him, the increase in the rating was influenced by the balance of the economy, the decrease in needs for external financing, rising international reserves and disinflation.
As reported by Bloomberg, the main reason for the credit rating upgrade was improvements in governance and, in particular, a decisive and “increasingly settled return” to orthodox monetary policy.
“As inflation and domestic demand begin to decline, our confidence that inflation pressures will subside in the coming months and in 2025 is growing,” Moody’s report notes.
Inflation in Turkey is expected to fall below 45% by December, inflation expectations for the end of 2025 were reduced from 38 to 30%.
Moody's noted that the Central Bank of the Republic of Turkey has rapidly increased confidence in its monetary policy, which has contributed to establishing confidence in the Turkish lira.
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