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 index falls by over 2 percent at close, going down some 2,600 points from previous close
Policy rate, also known as one-week repo rate, remains same at 8 percent; lending rate rises 0.75 percent points
BIST 100 increases 0.29 percent; US dollar/Turkish lira exchange rate stands at 4.0850
Local units operating in manufacturing industry work at 77.3 pct capacity in April, says Central Bank
Public sector net borrowing falls by 3.5 billion pounds in 2017-18 financial year, says Office of National Statistics
Indices for service, retail trade, construction sectors fall in current month compared with March: Official data
Data monitoring company IHS Markit also flagged a slight slowdown in France, where strikes were interrupting a resurgent boom on the back of government reforms.
Treasury reports central government debt stock in March rises around 15 pct year-on-year, reaching nearly $235 billion
Sales to foreigners amounted to 1,827, 15.8 pct rise year-on-year, according to official report
BIST 100 slips 0.15 percent; US dollar/Turkish lira exchange rate stands at 4.0460
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