International credit rating agency Standard & Poor’s (S&P) revised Türkiye’s outlook from “negative” to “stable” and affirmed its credit rating at B, Azernews reports. The stable outlook reflects “balanced risks” on Türkiye’s creditworthiness after a return to orthodox monetary policy settings as the Central Bank raises interest rates. “In an effort to disinflate and de-dollarize the economy, the Central Bank, under new leadership, has raised the key one-week repo rate by 21.5 percentage points since June, to 30%. To offset fiscal deterioration, the Treasury has introduced indirect taxes,” the global rating agency said in a statement. “We believe that by 2026, absent renewed political uncertainty, the new team can rebalance Turkiye’s economy away from external debt-financed consumption and toward more balanced external and fiscal accounts, as well as more acceptable levels of inflation. Risks to this adjustment — both political and economic — are balanced,” it said.—Azer News
