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S&P increased Turkey's rating for the second time. International credit rating agency, Increased Turkey's credit rating by one notch from B+ to BB-.
of Turkey “B” The short-term credit rating was also confirmed..
S&P changed Turkey's credit rating outlook from positive to stable.
In the statement made by the organization, The Central Bank's tight monetary policy stance, Turkish officials help stabilize the lira, to reduce inflation, It was stated that it allowed it to rebuild reserves and de-dollarize the financial system..
Turkey's savings gap with the rest of the world has narrowed, This situation will increase the GDP ratio approximately since 2022. 4 It was stated that there was a decrease of.
The outlook is that authorities will reduce inflation, which remains high, Future plans for ambitious plans to manage workers' pay expectations and rebalance the Turkish economy 12 S, which is stated to be stable, reflecting the balanced risks in the month&In P's statement, It was stated that the rating could be upgraded if further progress is made in reducing inflation to single-digit levels and restoring long-term confidence in the Turkish lira..
EFFECT OF WAGE INCREASE RATES ON INFLATION
Wage increase rates, government 2025 year-end inflation target percentage 17 in its place, about percent 44 which is 2024 indexing to the inflation rate, It was pointed out that there was a risk for the anti-inflation program.
It is stated in the statement that it is assumed that the wage agreement will be determined between these two extreme points., However, it was noted that any increase rate higher than 30 percent would prolong the fight against inflation..
In the statement, Since there are no planned elections in the country until 2028, It was stated that there may be room to suppress demand and inflation through gradual fiscal and income policy tightening..
TURKEY'S CREDIT POSITIVE EVALUATIONS REGARDING THE GRADE
On the other hand, positive evaluations were made for Türkiye by other credit rating agencies..
Fitch, Turkey's credit outlook in March “stable”And “positive”translated to, credit score “B” from level “B+”or had raised.
Moody's downgraded Turkey's credit rating in January “B3” while confirming as, changed its rating outlook from stable to positive.
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