On Thursday, the Turkish central bank hiked its benchmark interest rate by 7.5 percentage points on Thursday to 25%, as the nation looks to begin to rein in its spiraling inflation.

The increase significantly exceeded the 20% increase which had been forecast by many economists.

The central bank chose to enact a major increase as the nation has chosen to move to a more “rational” economic and monetary policy following years of the nation cutting rates in an effort to stimulate economic activity, which has been blamed for a growing cost-of-living crisis in the nation caused by massive inflation.

The hike on Thursday was considered the first tangible evidence that policymakers in Ankara will make good on their public promises to return the nation to a more conventional monetary policy. Following the move, the lira rallied strongly.

Hafize Gaye Erkan, the governor of the Turkish central bank, who had been appointed in June, almost tripled the benchmark interest rates from 8.5% since he was appointed.

The regulator has not ruled out more policy tightening over the next few months, until the nation gets a better grip on its price inflation. In July, price growth surged from 38% in June to almost 48%.

As inflation has surged, the central bank has been forced to revise its year-end inflation forecast upward, from 22.3% to 58%.