By Ovunc Kutlu
ISTANBUL (AA) - Fitch Ratings said Friday it affirmed Czech Republic's long-term foreign currency issuer default rating at AA- with a stable outlook.
The rating agency said Czech Republic's ratings are supported by a record of credible macroeconomic and monetary policies, and a robust institutional framework underpinned by its EU membership.
Those factors, however, are balanced against the country's lower GDP per capita compared with its peers, and the small size of its economy.
Fitch said it revised Czech Republic's 2024 real GDP growth forecast to 0.9%, from 1.2% in February.
While the Czech National Bank has cut its key policy rate by 250 basis points to 4.5% since November 2023, Fitch expects monetary easing to continue.
The agency anticipates the central bank's key rate at 3.75% by the end of ther year and 3.5% by the end of next year.
It forecasts public debt to GDP ratio rising to 43.7% in 2025, from 42.4% in 2023 and then gradually declining to 42.9% in 2028, driven by a narrowing of primary budget deficits and recovering economic growth.