The international credit rating agency Moody's upgraded Türkiye's outlook from "stable" to "positive" while maintaining its credit rating at "B3."
The credit rating agency attributed this change to a significant shift in economic policy, particularly the return to orthodox monetary policy and expressed optimism about the potential improvement in Türkiye's macroeconomic outlook if the current policy is sustained.
"While headline inflation is projected to rise further in the near term, there are signs that inflation dynamics are starting to turn, indicative of monetary policy regaining credibility and effectiveness," according to Moody's.
The agency noted that the monetary tightening measures also enhance the prospects for reducing Türkiye's external imbalance and rebuilding the central bank's foreign-currency reserves, thereby decreasing vulnerability to external shocks.