Moody's completes periodic review of Turkiye with no rating change; sees 29% inflation at end-2026

Credit rating agency Moody's said late on Friday, 24 July 2026 (2 Mordad 1405) that it had completed its periodic review of Turkiye, conducted on 16 July (25 Tir), and took no decision on the country's credit rating. The agency stressed that a periodic review is not a rating change and does not indicate whether a rating action will take place in the short term. Moody's currently assesses Turkiye at "Ba3" with a "stable" outlook.

Moody's said the rating is supported by Turkiye's large, diversified and dynamic economy and its low public debt burden, and that the country's track record of effective policy implementation has improved since mid-2023, particularly because of the Central Bank of the Republic of Turkiye's adherence to a monetary policy framework aimed at reducing inflationary pressures. It added that the rise in global energy prices since the start of the conflicts in West Asia has complicated Turkiye's disinflation process.

Moody's expects inflation to stand at 29% at the end of 2026 and to decline to 24% by the end of 2027. It projects economic growth to slow slightly to 3.4% in 2026 from 3.6% in 2025, and to accelerate again in 2027, largely because of fiscal stimulus ahead of elections to be held the following year.