Fitch Ratings on Friday raised its outlook for Turkey's foreign exchange reserves to stable and affirmed its rating at B, saying that a change in economic policy may reduce overall financial instability in the near term.
Turkey has been suffering from hyperinflation for some time and is now in the wake of a radical policy shift after President Recep Tayyip Erdogan appointed a new finance minister and central bank governor and the resulting interest rate hike to 25 percent from 8.5 percent. The country is set to witness further rise in interest rates. JPMorgan also doubled its forecasts for the coming months, expecting fiscal spending plans and rising inflation to raise interest rates by another 10 percentage points during the next two central bank meetings.
In March Fitch affirmed Turkey's rating at B with a negative outlook, while Standard & Poor's in March moved the country to a negative outlook due to concerns over economic policy.
