Looks like the markets just don't have confidence in the lira, as despite the rate increase, it's slipping back.
I think the recent downgrading of seventeen Turkish banks by Moody's has had an impact, coupled with a further downgrade of Turkey's sovereign rating today - as the FT puts it:
Ratings agency Moody’s cut Turkey’s sovereign rating further into junk territory overnight, citing a continued weakening of its economic and political institutions and the increased risks from its wide current account deficit.
Not good.
JF