The Turkish Central Bank is expected to cut interest rates by another half a percent today bringing the base rate to 12.5%.

This follows the 2% cut that took place last month and reduced the Turkish interest rate to an all time low.

The reason for the reductions is that pressure is on the central bank to deal with the economic crisis that is biting hard in Turkey.

Recent figures show that the ‘official’ unemployment rate has risen to just over 12% (double that of the UK's 6%), car production is down 60% and overall industrial production down nearly 18%.

Many economists are forecasting interest rates will fall as low as 10% when Turkey agrees to the offer of a loan from the International Monetary Fund.

The bank will announce its decision at 7:00pm tonight.