⁍ Turkey’s central bank is seen keeping its policy rate on hold next week despite the lira hitting record lows.

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⁍ Analysts say the bank is under political pressure not to hike rates.

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⁍ The central bank is scheduled to announce its rate decision on Sept. 24 at 1100 GMT.

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– Turkey’s central bank is seen keeping its policy rate on hold next week despite the lira hitting record lows, but is expected to drive funding costs higher with more back-door measures, a Reuters poll showed Friday. The median estimate in a Reuters poll of 17 economists was for the central bank to keep its one-week repo rate steady at 8.25%. Three economists expected a rate hike with the estimates ranging between 100 basis points and 150 basis points. The central bank has held its one-week repo rate steady at 8.25% at its last three meetings, following a nearly year-long easing cycle that saw the policy rate cut aggressively from 24%. Instead of a formal hike, the central bank has resorted to back-door methods to tighten policy, using liquidity measures and directing lenders to borrow at a higher rate. Analysts say the bank is under political pressure not to hike rates. Four former Turkish Central Bank policymakers, including a governor, have told Reuters the bank should set aside such back-door policy tools and use next week’s meeting to formally raise the benchmark policy rate. The bank’s weighted average cost of funding CBTWACF= rose to 10.41% as of Thursday, due to back-door liquidity measures, from a low of 7.34% on July 16.