S&P: Change in monetary policy may increase reserves in Turkey

In the statement made by the credit rating agency, it was stated that there was a change in the monetary policy settings after the elections in Nigeria and Turkey.

“At the same time, policy makers in both economies may have to contend with high inflation and currency volatility for a long time,” the statement said.

“Credit conditions are stabilizing, albeit with higher interest rates in middle-income commodity-importing economies, including Hungary, Poland and Romania.” In the statement, it was pointed out that credit conditions in emerging markets improved despite the high global inflation rates, thanks to the greater clarity of the US monetary tightening cycle process.

Emphasizing that middle-income economies showed macroeconomic resilience despite the softening data from China, the statement said, “Financial area remains insufficient (in these economies). The cost of new borrowing is higher than it was two years ago, especially for countries with low credit ratings.