2024-05-05 13:59:52
The international rating agency “Standard and Poor’s” (S&P) raised Turkey‘s credit rating from “B” (lat. letters) to “B+” due to the economic rebalancing, keeping the assessment’s outlook positive, Anadolu Agency reported.
According to a Standard & Poor’s press release issued last night, Turkey is expected to improve coordination between monetary, fiscal and income policies amid external rebalancing.
“We forecast an increase in portfolio investment inflows and a narrowing of current account deficits over the next two years, along with lower inflation and dollarization, although progress will be slow and reserve accumulation modest as the central bank limits the depreciation of the Turkish lira.” , the agency said.
Following the re-election of President Recep Tayyip Erdogan in May last year, Turkey abandoned its unconventional policy of low interest rates in favor of tightening, raising the key rate to 50 percent in April from 8.5 percent last June, BTA reported.
Turkey’s annual inflation rate reached 69.8 percent in April, up from 68.5 percent in March.