The Turkish lira lost some of its gains a day after a higher-than-expected interest rate hike

The Turkish lira fell 2.8% on Friday, August 25, to give up some of its gains, one day after the central bank raised interest rates dramatically.

And by 07:36 GMT, the lira recorded 26.51 per dollar, compared to 25.75 per dollar, at the close of trading on Thursday, down 2.8%.

The lira hit a record low of 27.2350 per dollar shortly before the decision to raise interest rates was announced on Thursday.

The median estimate in a Reuters poll showed that the market was expecting Turkey’s central bank to raise its key interest rate by 200 basis points.

The Turkish Central Bank raised the interest rate by 750 basis points more than expected, to make sure that inflation will be reduced and its expectations stabilized as soon as possible.