The bank's most recent meetings only further worried investors as they produced no move on rates, despite the newly-appointed Finance Minister Berat Albayrak, Erdogan's son-in-law, publicly alluding to a more market-friendly monetary policy.
"Every time they have a chance to address the core issues, they're not taking them," said Andrew McCaffery, head of strategic investment solutions at Aberdeen Standard Investments. "It is something of their own doing and there doesn't seem to be any clear way out at the moment."
While the revelation of the planned talks comes as welcome news for many investors, the possibility of a doubling-down from Erdogan, fueled by nationalist support, would only throw the country's economy into further peril. In terms of foreign policy, it could also push Turkey closer to Russia. Relations between the two have been warming of late, and Moscow will likely welcome an opportunity to take advantage of cracks in the NATO alliance, already strained by Trump's regular criticism of its members.
The difficulty in predicting the outcome of the current crisis, analysts say, is that it involves politics and trying to predict the actions of both Erdogan and Trump — two outspoken leaders known for a dedication to their nationalist support bases — and how aggressively sanctions could intensify if Turkey does not acquiesce to U.S. demands.