Tuesday, June 06, 2006

FT.com / World / Europe - Turkey set to increase rates amid slide in lira

"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."

More:FT.com / World / Europe - Turkey set to increase rates amid slide in lira