>> Turkey's Central Bank seeking to ease concerns on Tuesday, as it battles a falling lira. The bank pushing up the cost of borrowing, but leaving its main interest rate on hold, in an effort to stop the currency slide. Disappointing investors, who were hoping for a significant rate hike and amid questions about the bank's independence.
Turkey Bureau Chief, Nicholas Tattersall, says the net result is a confused picture for markets.>> They feel that the bank has shied away from a straight forward rate hike, something that they wanted to see. And they're concerned that this will not be enough to underpin the lira and to prevent further falls.
They're also concerned that it sends a message that the Central Bank is not independent. And that it's made these moves because it's concerned about pressure from the government, about the vocal calls from President Erdogan, for borrowing cost to remain low.>> The lira's already fallen some 8% this year, on top of double digit losses in the previous two years, wreaking havoc on Turkish retailers.
The question now is how the lira will react in the coming weeks and months and whether the Central Bank will find itself back in the same position analysts expecting further rate hikes.