Fitch Upgrades Turkey's Credit Rating on Tighter Policies Lowering Inflation

• Fitch upgrades Turkey's credit rating to B+ from B, citing tighter monetary policies helping combat inflation

• Upgrade reflects increased confidence in effectiveness of policies implemented since June 2023 pivot

• Turkey abandoned low interest rate policy in favor of rate hikes to 45% from 8.5% since June

• Inflation rose to 67.07% in February, but expected to decline to around 40% by end of year

• Turkey expected to take more policy steps to cool inflation after March 31 elections, per economists