Turkey’s central bank is set to announce its decision on interest rates Thursday.It will be a crucial test: will the country’s economic policy shift to more conventional methods to combat soaring inflation, which peaked at 85% last year?The Turkish currency has declined in value since 2021 due to what economists say is Turkish President Recep Tayyip Erdogan’s insistence on keeping borrowing costs low to stimulate growth despite skyrocketing inflation.The policy runs contrary to conventional economic approaches that call for higher interest rates to tame inflation.Analysts say Erdogan’s government propped up the lira in the run-up to Turkey's presidential and parliamentary elections last month, using foreign currency reserves to keep the exchange rate under control. The lira's weakening suggests that the government is slackening its control of the currency.The choices for two key financial roles have raised hopes that Erdogan, reelected last month to a third term, will move away from his insistence that lower interest rates will fight Turkey's staggering inflation.Last week, Erdogan appointed Hafize Gaye Erkan, 41, a Princeton-educated banker who is the first woman to lead the Turkish central bank. She briefly served in 2021 as co-chief executive of First Republic Bank, which last month became the second-largest U.S. bank to fail as its wealthy clients pulled their money during wider turmoil in the sector.Erdogan also named Mehmet Simsek, an internationally respected former banker, as treasury and finance minister. He was a former finance and deputy prime minister under Erdogan and returned after a five-year break from politics.The next steps are critical as the economy struggles with a crashing currency and inflation at a still-high 39.5%.The central bank’s meeting on June 22 will be a key indicator of the course Turkey’s economy will take.