Fitch Ratings revised Turkey’s outlook from negative to stable and affirmed its credit rating at “B” on Friday.
“The revision of the outlook to stable reflects a return to a more conventional and consistent policy mix that reduces near-term macro-financial stability risks and eases balance of payments pressures,” the agency said.
Noting that the newly appointed economic team was seeking to improve policy coherence, the agency said the efforts contained a growing budget deficit and slowing domestic demand.
Fitch also warned that high inflation remains the main risk and political challenge facing the country.