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![\"Moody\u2019s](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/07\/6a65c3eefb32054b49570907.jpg\")
<\/p>\n ISTANBUL
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Moody\u2019s expects the Turkish inflation to ease to 29 percent at the end of 2026. <\/p>\n
Moody\u2019s<\/a> Ratings has completed a periodic review of the ratings of T\u00fcrkiye<\/a> but has not announced a credit rating action.<\/p>\n Moody\u2019s currently rates T\u00fcrkiye at \u201cBa3\u201d with a stable outlook. Fitch Ratings earlier this month affirmed the country\u2019s long-term issuer default ratings at \u201cBB-\u201d with a stable outlook.<\/p>\n The ratings company said in a statement that T\u00fcrkiye\u2019s credit ratings are supported by T\u00fcrkiye\u2019s large, diversified and dynamic economy and its low government debt burden.<\/p>\n \u201cThe track record of effective policymaking has improved since mid-2023, particularly through the central bank\u2019s adherence to a monetary policy framework that is easing inflationary pressures, reducing macroeconomic imbalances and gradually restoring the confidence of domestic depositors and foreign investors in the Turkish Lira,\u201d it said in a statement on July 24.<\/p>\n The spike in global energy prices since the start of the Middle East conflict has challenged T\u00fcrkiye\u2019s disinflation momentum, according to Moody\u2019s.<\/p>\n \u201cWe now expect inflation to end 2026 at 29 percent, higher than previously projected, before easing to 24 percent by the end of 2027,\u201d it said.<\/p>\n Real GDP growth is expected to slow modestly to 3.4 percent in 2026 from 3.6 percent in 2025, mainly driven by weaker external demand and some erosion of household purchasing power due to higher fuel prices, it noted. \u201cWe expect growth to accelerate in 2027, ahead of the following year\u2019s presidential and parliamentary elections, driven mainly by fiscal stimulus,\u201d Moody\u2019s said.<\/p>\n The rating could be upgraded if the authorities continue to effectively implement policies and reforms that durably restore macroeconomic stability, reduce the sovereign\u2019s susceptibility to exchange rate and inflation shocks and allow for a structural reduction in external vulnerability risks, it added.<\/p>\n