President Erdogan has the unorthodox belief that high interest rates cause inflation. Turkey face 20% inflation, but central bank is not being given free reign to hike interest rates. Instead they have to listen to their President's belief on monetary policy. This is a great example of why central banks should focus on what they do best, namely monetary policy without excessive political interference. (everything is politics to some extent, so it can't be totally separated)
As a result of this situation the TRY reaches fresh levels of weakness. It will take around 500-1000bps of hikes to start bringing this inflation down. The poor folks of Turkey are just seeing their savings being eaten away.
