While raising interest rates could help stem the lira's slide, the central bank is under pressure from the government to cut rates in order to stimulate Turkey's flagging economy—although the bank is supposedly fully independent from political influence.
On Monday evening, Turkey's economy minister, Nihat Zeybekci, said that while he did not expect a cut this week, Turkey's benchmark borrowing costs should be lowered, according to Reuters.
Read MoreTurkey central bank still beholden to politics?
Ben Gutteridge, head of fund research at Brewin Dolphin, told CNBC that Turkey needed to loosen monetary policy in order to stimulate growth, but that doing so would be problematic while the lira was falling.
"They don't have the flexibility that they need at this time," he said on Tuesday.
"The idea that they can start loosening monetary policy, which is what their economy needs in terms of growth, is very unlikely given the challenges that their currency faces and what that brings in terms of inflationary pressure and currency weakness," Gutteridge added later.