Moody’s made an important assessment of the Turkish economy and raised Turkey’s credit rating. According to the credit rating agency’s statement, Turkey’s credit rating was raised from “B3” to “B1” and the credit rating outlook was maintained as “positive”.
Reasons for Increasing Credit Score
Among the main drivers for the credit rating upgrade are the positive developments in the country’s administration and the sound monetary policy implemented. Moody’s statement emphasized that the moderate course of inflation and domestic demand in Turkey provides confidence that inflation pressures will ease significantly in the coming periods and towards 2025.
The Role of the Central Bank
The statement stated that the tight monetary policy implemented by the Central Bank of the Republic of Turkey (CBRT) contributed to the re-establishment of confidence in the Turkish Lira by rapidly increasing its credibility. It was also emphasized that the decisions taken and policies implemented by the CBRT significantly reduced Turkey’s high external vulnerability.
Positive Outlook and Risk Balancing
Moody’s statement stated that the positive outlook of Turkey’s credit rating, together with the increase, reflects the upward risk balance. It was emphasized that the steps taken to ensure that the country’s economy can look to the future with more confidence and to ensure economic stability yielded positive results.
