In a move to take the economy off the inflationary boil and strengthen the Turkish Lira the Turkish Central Bank increased interest rates earlier this week.

The Turkish Central Bank increased the cost of lending money to 7.25 percent earlier this week.

Savers should now be able to get a better return on any cash they have in the bank.

The increase will be a welcome move for many savers and will go some way to reducing the gap between inflation and interest rates that have been slowly eating away at their value.

However, with inflation at around 8.3 percent (CPI June 2013) there is a still a negative return for savers.

There has been little effect on the value of the Lira since the announcement which traded at 2.95 to the British Pound when the markets closed on Thursday.