Turkey hikes interest rate by 2.5 points as markets call for more

ISTANBUL (AP) -- Turkey's central bank raised its key interest rate Thursday, another sign of commitment to a traditional path of battling inflation but still falling below expectations after critics blamed President Recep Tayyip Erdogan's economic policies for inflaming a cost-of-living crisis.

The 2.5 percentage point hike -- putting the rate at 17.5% -- came a month after the bank unleashed an 8.5% increase, a reversal after more than a year of rate-cutting prompted by Erdogan.