Moody's has raised Turkey's long-term debt rating one notch, from B1 to Ba3, with a stable outlook, though it remains in speculative territory, the rating agency said. Moody's justified its decision Friday by citing effective economic policies that have helped restore investor confidence in the Turkish lira. It also highlighted the central bank's commitment to tight monetary policy that "durably eases inflationary pressures" and "reduces economic imbalances." Inflation continued to slow slightly last month in Turkey, reaching 35 percent year-on-year, according to official figures released in early July. It had exceeded 75 percent in May 2024 year-on-year, before slowing month after month. Moody's said the government's structural reforms, aimed at reducing energy dependence and boosting export competitiveness, could make the economy more resilient to external shocks.