He repeated however, his belief that interest rates should be cut, calling them an "instrument for exploitation". "If you say ´inflation is the cause, the rate is the result´, you do not know this business, friend", he added.
The bank vowed the tight stance in monetary policy would be "maintained decisively until inflation outlook displays a significant improvement" in the statement.
"It nearly seems like it's a game of "good cop, bad cop" being played out between the Turkish authorities - with President Erdogan on the one hand still making statements regarding his dislike of interest rates and. a very sizeable reaction from the central bank in response to the recent inflationary and geopolitical developments".
"They act according to the Central Bank's decisions and there are now rates as high as 50 percent in practice", Erdoğan said, underlining that such sharp profits could only be gained through narcotics.
The US earlier hit Turkey with tariffs on items such as steel and aluminium in an effort to increase pressure on the country to free the detained American pastor Andrew Brunson.
The currency rose to touch 6.3673 per dollar, the highest since August 29.
The Turkish lira began to recover shortly after the rate hike, strengthening by 3% to 6.16 against the dollar.
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Who is responsible for Turkey's lira crisis? Growth slowed to an annual rate of 5.2% in the second quarter, from the first quarter's 7.4%.
Some analysts predict that the decree on property transactions could have a negative impact on property sales in Turkey, especially by overseas investors.
"Ultimately, I think if you're buying long-term in Turkey, it shouldn't really be an issue. Reorganizing the wealth fund is a must", he said.
The revamp was the latest in a series of steps Erdogan has taken to assume new powers since he won a presidential election in June, heralding the move to an executive presidency which grants sweeping authority.
Erdogan a year ago said the fund needed a "reorganisation" after the first chairman Mehmet Bostan was removed from his post in September 2017.
Zafer Sonmez, head of Turkey and Africa for Malaysia's government investment vehicle Khazanah Nasional Bhd, was named general manager.
Erdogan said last September that the fund was to be reorganised after dismissing Mehmet Bostan, its chairman, over its failure to meet targets.
Tens of billions of dollars worth of state assets, including the wholly state-owned Ziraat Bank, were transferred to it in 2017.