The Turkish central bank on Tuesday said it was hiking its main interest rate by 75 basis points in a bid to boost the ailing lira which lost a quarter in value against the dollar over the last year.

The monetary policy committee of the bank said the overnight lending rate was being lifted to 9.25 percent from 8.5 percent, the second rate hike since November last year. But with markets hoping for even more, the lira lost 1.25 percent against the dollar to trade at 3.8 to the greenback.