Fitch Ratings revised Türkiye's outlook from negative to stable and reaffirmed its credit rating as "B" on Friday.

"The revision of the Outlook to Stable reflects the return to a more conventional and consistent policy mix that reduces near-term macro-financial stability risks and eases balance of payments pressures," the agency said.

Noting that the newly-appointed economic team seeks to improve policy consistency, the agency said the efforts contained an increased budget deficit and slowed domestic demand.

Fitch also warned that high inflation remains the country's main risk and policy challenge.