The lira and Turkish stocks rallied after the central bank raised its key rate in line with forecasts, fueling speculation President Recep Tayyip Erdogan will make good on a pledge to return to market-friendly policies.
The lira appreciated as much as 2.5% per dollar following the decision to hike by 475 basis points, helping the currency buck declines among emerging-market currencies on Thursday. The benchmark stock index reversed ealier losses.
