Turkey shocks with big rate hike to 25%, boosting lira  – Reuters News Agency

Reuters was first to report when Turkey’s central bank shocked markets by hiking its interest rate by 750 basis points to 25%, three times the size of the expected tightening. The lira currency immediately rallied more than 7%, bank stocks jumped 8% and dollar bonds gained more than 2 cents. The move was Turkey’s biggest policy surprise in years and marked President Tayyip Erdogan’s clearest step yet toward a more orthodox approach after years of currency crashes and soaring inflation.