Fitch raised its forecast for Turkey to “stable” and affirmed its rating at “B”, after appointing a new economic team in the country.
“Adjusting the outlook to ‘stable’ reflects a return to a more traditional and consistent policy mix that reduces near-term macro-financial stability risks and eases balance-of-payments pressures,” it said on Friday.Noting that the newly appointed economic team is seeking to improve policy coherence, Fitch said the effort contained a growing budget deficit and slowing domestic demand, according to Newspaper Turkish “Daily Sabah”.
But Fitch warned that Turkey’s high inflation remains the country’s main risk and political challenge.
Source: Spuntik