Turkey Expected to Hike Rates by 1.75%

The Central Bank of Turkey is expected to raise its main interest rate by 175 basis points to 12% this week, according to a Reuters poll.

Despite a surprise 2% increase in interest rates last month, the Turkish Lira (TRY) declined by 4% against the US Dollar (USD), continuing its depreciation.

Economists polled by Reuters expected rate hikes between 100 and 300 basis points.

The TRY is trading lower today against the USD by 0.41%, with the USD/TRY trading at 7.8898.