World Bulletin / News Desk
Turkey's "fiscal strength" remains a key credit anchor, international credit rating agency Moody’s said on Wednesday.
"Expansionary fiscal policy stance to persist, causing historically favorable debt metrics to weaken somewhat," the agency said in a statement
"We expect that the Turkish government will be reluctant to withdraw its fiscal stimulus, which is propping up growth, leading to modestly rising debt-to-GDP ratios over the next two years. Fiscal strength nonetheless remains a key credit anchor," it added.
Moody's also claimed Sunday's referendum outcome was unlikely to ease political uncertainty.
"Given the slender margin of support for the changes, we expect that Turkish society will remain polarized over this issue, leaving the government preoccupied with both domestic politics and geopolitically driven security risks," it said
The agency also said that business expects some structural reforms.
"Business is calling on the government to enact long-delayed structural economic reforms, but the authorities' willingness to do so could be tempered by their desire to regain electoral support lost in the referendum before the 2019 presidential and parliamentary elections."
BIST 100 rises 0.01 percent; US dollar/Turkish lira exchange rate drops to 4.0250
Fresh hopes that Donald Trump and North Korea's leader Kim Jong Un will hold a historic summit within months also provided some much-needed optimism.
The fund cautioned that investors and financial markets expect a steady approach to monetary tightening based on the belief inflation will remain relatively tame.
Turkey's assets abroad go up 2.4 percent at end of February 2018, compared to end of 2017: Turkish Central Bank
BIST 100 decreases 0.12 percent; US dollar/Turkish lira exchange rate stands at 4.1020
Hong Kong and China ended down after fluctuating through the morning on data showing the world's number two economy expanded in January-March at the same rate as the previous three months.
For Turkey, Germany is a very important, indispensable partner: Turkish Energy Minister Albayrak says in Berlin
BIST 100 rises 0.69 percent; US dollar/Turkish lira exchange rate stands at 4.0830
The United States, Britain and France carried out attacks at the weekend on alleged chemical weapons facilities, in response to what they say was a toxic gas attack by the Russia-backed Assad regime a week before.
Excluding interest payments, central government budget balance saw surplus of nearly $500M in first quarter of 2018
London's FTSE 100 index fell 0.1 percent to 7,254.83 points, with UK advertising giant WPP diving four percent after chief executive Martin Sorrell resigned over the weekend.
The US, Britain and France carried out attacks at the weekend on alleged chemical weapons facilities, in response to what they say was a toxic gas attack by the Russia-backed Assad regime a week before.
Industrial production surges 9.9 pct year-on-year in February, official data show
BIST 100 rises 0.23 percent; US dollar/Turkish lira exchange rate stands at 4.1020
Unemployment in January goes down 2.2 percentage points from the same month last year, says TurkStat