Turkish Central Bank raises rates for first time in three years as Turkish Lira plunges

Turkey's Central Bank raised its benchmark interest rate by 50 basis points on Nov. 24, the first increase in nearly three years, as a surging U.S. dollar and domestic worries batter the Turkish Lira.

Defying top officials' repeated calls for cheaper credit, the bank increased the one-week repo rate to 8 percent. It also lifted it overnight lending rate to 8.5 percent, from 8.25 percent.

The bank kept its overnight borrowing rate at 7.25 percent.  

The lira has lost some 14 percent of its value against the dollar this year, hit by both the strengthening dollar and investor concern in the aftermath of Turkey's failed July coup.