Turkey’s top leaders threatened Tuesday to cut ties to Fitch and Moody’s, two of the world’s largest credit rating agencies, over disputes about their reports on the country.

INFLATION CALCULATOR

Moody’s last month warned about potential instability in Turkey and said that structural reforms were being delayed.

Fitch said it was concerned by high inflation and the country was vulnerable to a drop in capital inflows if the US interest rate policy changed.

Calls by politicians on the central bank to lower interest rates has also sparked concern about the independence of monetary policy.

“These are simply political statements and have no economic or scientific basis. If necessary, I will tell the prime minister and we will cut ties with Fitch and Moody’s,” President Recep Tayyip Erdogan was quoted as saying by local media outlets.

Prime Minister Ahmet Davutoglu echoed the sentiment, saying before heading to northern Cyprus that ratings agencies needed to be “objective” and “act within the economic criteria.”

Erdogan believes lower interest rates will lead to lower inflation.

In 2012, after Standard and Poor’s lowered Turkey’s rating, the country cut ties with the agency.

The agency continued to issue so-called unsolicited ratings on Turkey to its clients.

Turkey heads to parliamentary elections next year and many analysts are awaiting the outcome to determine how the country’s path ahead will look.

GNA

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