Fitch criticized Turkey’s fiscal stance

International credit rating agency Fitch Ratings, Turkey’s fiscal stance ‘obviously expansionary’ He noted that it was.

The new economic management maintains a tight stance in monetary policy. However, criticism came from Fitch regarding fiscal policy.

According to BloombergHT, Fitch Ratings’ Senior Director and Turkey Analyst Erich Arispe Morales emphasized that fiscal policy adjustment is necessary to support the tightening of monetary policy.

Stating that the main policy challenge in Turkey right now is inflation, Morales said:

“From now on, we need to see to what extent policies will be tightened to reduce inflation sustainably. Therefore, there are steps that need to be taken not only on the monetary policy side but also at other policy levels to support the disinflation process and the work of the Central Bank.”

Fitch is not ‘positive’ on inflation