On Thursday, Turkish President Tayyip Erdogan said that high interest rates are an "instrument of exploitation", and the central bank should reduce them.
His comments were made public a few hours earlier before the central bank announced a decision on monetary policy.
The Turkish lira, which gained confidence amid rising rates, fell more than 3 percent after Erdogan's comments.
The Central Bank of Turkey is going to announce its decision on the interest rate at 7 am Eastern time. It is expected that the bank will raise the key rate sharply to 20.75% against 17.75%.
Erdogan insists that the central bank remain independent, although his views on the relationship between interest rates and inflation remained unchanged, reports the Financial Times. "
" Interest is the cause, and inflation is the result, "Erdogan told the Financial Times at a meeting of small business owners in Istanbul. p>