However President Recep Tayyip Erdogan has described himself as an "enemy of interest rates".
The Turkish lira tumbled 5 percent against the USA dollar earlier in the day, doubling down fears of a full-scale currency crisis after a Fitch statement warned that curtailing the Central Bank's independence will inflict pressure on Turkey's sovereign credit profile.
The central bank, which had been scheduled to hold its next policy-setting meeting on June 7, said it had increased its top interest rate to 16.5 percent from 13.5 percent, prompting a sharp rally in the lira after it earlier tumbled 5 percent.
The comments came alongside another warning from Fitch on Tuesday, which rates Turkey two notches higher than S&P at BB+.
Until the bank's move, the lira has lost over 18 per cent in value against the dollar as fears grow over the health of the Turkish economy. Concerns had grown that imports would become more expensive for the Turkish people.
"This rhetoric is extremely unsafe and will put Turkey in a dead-end street", Durmus Yilmaz, a former governor of the Central Bank who is running for Parliament, said of Mr. Erdogan's remarks in London.
"The Turkish lira is an outlier now", said William Jackson of Capital Economics, speaking to the Financial Times.
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The crisis emerged after the Turkish President said he planned to take more control of the country's finances after a general election on 24 June.
In addition to the plummeting currency as well as high inflation and unemployment, one of the weakest points of the Turkish economy is the current account deficit and external debt. Economists say that is partly because the U.S. Federal Reserve is raising interest rates, encouraging investors to place their money in the U.S. instead of other economies.
While a central bank is in theory independent from the government, Erdogan has put pressure on it to not raise rates as he prepares for early presidential and parliamentary elections next month.
Ankara is hugely reliant on foreign capital and has suffered from this trend. Other countries that have seen sharp drops in their currencies include Brazil and Argentina. "The central bank governor and members of the monetary policy committee have my full backing in doing what's necessary to stem the slide in lira and achieve price stability", he wrote.
His deputy Bekir Bozdag has implied that foreign powers were to blame for the lira's collapse.
"Those who believe that by manipulating the dollar they will lead to results that will harm the nation and their pockets and change the election result, are mistaken", he told the semiofficial Anadolu news agency.
His remarks for potential interference in the Central Bank's independent policy-making mechanism produced a backlash in global markets and sent lira plunging to historic lows.