Turkey under pressure to raise interest rates as economic crisis looms

Rampant inflation, a falling currency and tensions with the US are hurting Turkish consumers and businesses

Turkey is facing mounting pressure to announce an emergency rise in interest rates as rampant inflation, a plunging currency and American sanctions pushes one of the world's key emerging market countries to the brink of crisis.

Analysts said Turkey's central bank would have no choice but to increase borrowing costs aggressively in the coming days to stem the fall in the lira, which is down by almost a third against the US dollar in the past 12 months and hit a record low this week.