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The Turkish lira Wednesday extended its historic slide on the eve of a meeting at which the central bank was expected to lower interest rates for the fourth month in a row, AFP reported. 

The lira has shed half its value since the start of the year -- and 30 percent in the last month alone -- as policymakers bow to President Recep Tayyip Erdogan's wishes to bring down borrowing costs despite soaring inflation. A dollar could buy three liras in 2016 and 7.43 liras on January 1. It was worth 14.70 liras on Wednesday while the annual rate of consumer price increases stood at more than 20 percent.

Erdogan has launched a self-declared "economic war of independence" that defies conventional market economics by fighting inflation through a reduction of borrowing costs.

Analysts and diplomats believe Erdogan unleashed his pro-growth policy in a bid to revive sagging approval numbers ahead of a general election due within the next 18 months.