ISTANBUL: Turkey’s central bank said on Sunday it was raising the maximum interest rate credit card lenders can charge each month to 2.25 percent for Turkish lira and 1.80 percent for foreign exchange transactions.

The interest rate where payments are overdue will increase to a maximum 2.75 percent for Turkish lira charges and 2.30 percent for those in foreign currencies.

The revisions, which come into effect on Oct. 1, represent a 23 basis point increase for lira rates and an 18 basis point increase on foreign exchange from the limits set by the bank for the third quarter.

They follow the central bank's decision on Thursday to hike its benchmark interest rate by 625 basis points to 24 percent.

(Reporting by Dominic Evans; Editing by Mark Potter) ((, @DominicJEvans;))