The director of TEPAV (The Economic Policy Research Foundation of Turkey), shared Fitch’s significant warnings regarding Turkey’s credit rating upgrade. She noted, “Fitch raised our rating but warned against cutting interest rates too early,” drawing attention to the language used in the report.
The credit rating agency Fitch upgraded Turkey’s credit rating by one notch, moving it from “B+” to “BB-.” The outlook was set as “stable,” and while this decision was anticipated, the overall commentary was positive.
Economist Mahfi Eğilmez called the decision “positive,” while Hakan Kara questioned the reasoning behind Fitch’s rating upgrade. Various economists shared their perspectives on the matter.
In its evaluation, some of Fitch’s statements stood out. Dr. Burcu Aydın Özdoğru emphasized Fitch’s warnings against an “early interest rate cut,” cautioning as follows: “Considering that inflation remains high, any premature easing of monetary policy or a shift from current policies could reignite inflationary pressures, and therefore, macro-financial and balance of payments risks.”
