Turkish central bank seen giving in to rate hike pressure

The Turkish lira edged back from record lows on Monday after the central bank announced an emergency policy meeting, raising market hopes that it would ignore political pressure and implement a decisive rate hike. Prime Minister Tayyip Erdogan, keen to maintain economic growth ahead of an election cycle starting in two months' time, has been a vocal opponent of higher borrowing costs, railing against what he describes as an 'interest rate lobby' of speculators seeking to undermine the Turkish economy. That has left the central bank struggling to contain the lira's precipitous slide. "We think this is the reason why it took the central bank so much time to react.

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