Türkiye to maintain tight monetary policy, Fitch Ratings forecasts

Policy consistency will improve in 2025 as tight monetary policy conditions are maintained, accompanied by a significant reduction in the budget deficit and rational income policies, reports U.S.-based international credit rating agency Fitch on Türkiye’s economic outlook.

Fitch Ratings released an analysis of the 2025 outlook for Eastern European economies on Tuesday, highlighting that the anticipated economic growth in the region will be balanced by weak public finances and elevated geopolitical risks.

The report also included assessments of Türkiye, noting that the country’s balanced economic policies have led to a significant reduction in external vulnerabilities and improvements in market perception. Emphasizing the need for sustained commitment to policies, the analysis anticipated gradual easing of monetary policy to combat persistently high and relatively “sticky” inflation.

The report also emphasized key developments to watch in Eastern Europe in 2025, including Türkiye’s rebalancing process, the continuity of its policies, efforts to reduce inflation, the rebuilding of monetary policy credibility, and sustained improvements in access to external financing.