It remains to be seen if the measures are enough to spur spending.
The bank lowered its one-week repo rate 325 basis points from 19.75 percent to 16.50 percent.
The Governing Council holds its next policy meeting on September 12 and has all but promised a stimulus package, with economic growth faltering as a global trade war rumbles on and Germany’s manufacturing sector already in recession.
The inflation rate will fluctuate between 11.5 percent and 16.3 percent through the end of this year, Central Bank Governor Murat Uysal said during Inflation Report 2019.
Finance and Treasury Minister Berat Albayrak says over $10 billion in foreign investments entered Turkey since May, and the Turkish economy will grow "positively this year."
The Fed's move came despite President Donald Trump's attacks in recent weeks on its rate hikes and on Chairman Jerome Powell personally.
The Turkish Central Bank on Wednesday forecasted Turkey's year-end inflation rate to reach 23.5 %, adding it would fluctuate between 21.9 % and 25.1 % through to the end of year.
September 15 marks the 10th anniversary of the collapse of Lehman Brothers. It was the fourth largest US investment bank at the time, and its demise is considered one of the defining moments of the 2008 financial crash.
Its monetary committee decided to "implement strong monetary tightening to support price stability," it said on Thursday, as it raised interest rates by 625 basis points in the face of a spike in inflation and a slump in the lira.
The Turkish economy is facing challenges, however, part of this is speculation aimed at weakening the country.
Seventy million out of Egypt's 95 million people now rely on government ration cards to buy food as the cost of living in the country has increased.
Turkey's Central Bank raises late liquidity window interest rates from 13.50 to 16.50 percent.
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