While central banks consider hiking or do hike to contain inflation the Central Bank of Turkey actually cut rates yesterday. Why?

Because of President Erdogan's unorthodox belief that high interest rates cause inflation.

Lira weakens further. Turkish inflation over 20%.

The chart says it all. Sad to see.

This should be a case study on why central banks setting monetary policy should be kept separate from Gov't's setting monetary policy. President Erdogan sacked two finance ministers yesterday. They must have been trying to steady the ship before the rate cut.