The Turkish central bank announced on Thursday that it was lifting its policy rate to 50% from 45% in a surprise move.
Annual consumer price inflation in Turkey hit 67.07% in February, exceeding expectations.
The central bank said in a statement: "Tight monetary stance will be maintained until a significant and sustained decline in the underlying trend of monthly inflation is observed, and inflation expectations converge to the projected forecast range.
"Monetary policy stance will be tightened in case a significant and persistent deterioration in inflation is foreseen."