Skip to content

Fitch Lowers Turkey Outlook to Negative on Rate Cuts, Lira Slide

  • Lira losses could reignite financing pressures, Fitch says
  • Turkish currency has weakened about 30% over the past month
Turkish Economy as Lira Reels from Erdogan's Central Bank Cuts
Photographer: Moe Zoyari/Bloomberg

Fitch Ratings cut the outlook on Turkey’s sovereign credit rating to negative, citing a deterioration in domestic confidence as a result of monetary easing the credit assessor described as “premature.” 

The outlook change comes a day after President Recep Tayyip Erdogan abruptly replaced his finance minister amid deepening rifts in the administration over aggressive interest-rate cuts that have undermined the currency. The lira has weakened about 30% over the past month.