Fitch raised Turkey's credit rating from B to B+ , Friday, saying that tightening monetary policy by Ankara helps combat inflationary trends in the country.
The rating upgrade comes after the Turkish Central Bank kept interest rates unchanged in February.
“The rating revision reflects increasing confidence in the robustness and effectiveness of the policies that have been implemented since the shift (change in monetary policy) in June 2023,” Fitch said.
After President Recep Tayyip Erdogan's re-election in May, Turkey abandoned its unconventional low interest rate policy in favor of tightening monetary policy. It raised the key interest rate to 45% from 8.5% last June.
Inflation then rose to 67.07% year-on-year in February, beating expectations and maintaining pressure to tighten monetary policy.
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