The annual inflation climbed has increased to 15.4 per cent and the central bank is expected to hike its one-week repo rate by 100 to 125 basis points.
The Central Bank of the Republic of Turkey (TCMB), is expected to lift interest rates at its meeting on 24 July 2018, reported Reuters.
The lira has lost more than a fifth of its value against the dollar this year, driven by central bank’s concerns to rein in double-digit inflation and government influence over monetary policy a development that has driven up the cost of food, fuel and consumer goods.
The year-end inflation expectation was raised to 13.88 per cent from previous 12.28 per cent, a central bank survey of business leaders and economists showed with the bank’s inflation target set at five per cent.
The independence of the central bank was questioned when Erdogan appointed his son in law to be head of finance ministry aa well as signing a series of changes to the way the central bank’s top leaders are chosen, signalling his intention to tighten his grip on monetary policy under the new executive presidency.