"Turkey set to increase rates amid slide in lira
By Vincent Boland in Ankara
Published: June 5 2006 18:43 | Last updated: June 5 2006 22:58
Turkey’s central bank is expected to raise interest rates for the first time in five years on Wednesday in a bid to arrest a heavy slide in the lira, deepening the woes of a government battling accusations that its reform programme is faltering.
An interest rate rise would dismay Recep Tayyip Erdogan, the prime minister, who has counted on continued rates falls and a booming economy to boost the government’s popularity before next year’s general election."
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