International credit rating agency Moody’s has lowered Turkey’s growth forecast for 2018 from 4 percent to 2.5 percent on the grounds of high inflation rates, increasing oil prices and loss of value in the Turkish Lira.
While the annual inflation goal of the Central Bank of the Republic of Turkey was previously announced as 5 percent, the inflation rate is currently at the level of 10.85 percent.
Moody’s has pointed out that the currency impact which will occur due to the loss of value in the Turkish Lira is likely to further increase the inflation rates in the upcoming months.
The rating agency has also emphasized that as a result of the statements made by the President Erdogan regarding monetary policies, the independence of the Central Bank has become questionable.
In March 2018, Moody’s lowered Turkey’s credit rating from Ba1 to Ba2 and changed its outlook from “negative” to “stable”.
CHP EU Representation