ANKARA, October 24, 2026 — S&P Global says Turkey’s shift toward more orthodox economic policies and tighter monetary conditions continues to support its sovereign credit rating, but the outlook faces important tests.

The agency maintained a BB- rating with a stable outlook, according to Reuters. It said slower-than-expected disinflation and uncertainty about the durability of policy could challenge confidence in the government’s economic programme.

Turkey began reversing years of very loose monetary policy in 2023. Inflation remains close to 30% annually, with higher energy prices and successive economic shocks contributing to persistent pressure on households and businesses.

Signs of weaker domestic demand, slower retail sales and reduced credit growth suggest that tighter financial conditions are having an effect. The central bank cut its key interest rate from 37% to 36% on October 22 after September inflation came in below expectations.

S&P analyst Karen Vartapetov said disinflation had been delayed but not derailed. However, policymakers will need to demonstrate that they can maintain a consistent approach as presidential and parliamentary elections approach, currently scheduled for May 2028 but potentially earlier.

The agency also viewed Turkey’s recent investment-fund crisis, which led regulators to liquidate more than 100 funds over alleged asset manipulation, primarily as a governance and supervision issue rather than a systemic threat to the financial sector.

Source: Reuters, October 23, 2026. Featured image is an illustrative city photograph.