The country “has pledged a return to more orthodox economic policies” after President Recep Tayyip Erdogan’s re-election in May, the global credit rating agency said.
“The new economic team has committed to bringing down inflation, reducing Türkiye’s large external imbalances and ensuring fiscal discipline and has started to gradually correct the direction of monetary and fiscal policy,” it said.
“The shift toward more orthodox, rules-based and predictable policymaking is credit positive and comes earlier than we had expected,” it was quoted as saying by Turkish media reports.
Moody’s also noted that the country’s central bank has started to return to a more orthodox monetary policy setting and is expected to continue tightening steps.
New treasury and finance minister Mehmet Simsek recently said Turkiye is determined to implement rule-based policies in line with international norms to ensure macro-financial stability and increase its resilience to shocks. “We believe this will reflect on our credit rating,” he added.
His country aims to permanently lower soaring inflation after a transitional period where prices remain high, he said.
Increasing the predictability of economic policies is one of the primary goals to attract foreign investment, Simsek added.
ALCHEMPro News Desk (DS)
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