2018.09.1306:49:00UTC+00Turkey President Erdogan Seeks Interest Rate Cuts; Lira Tumbles

Turkey's President Tayyip Erdogan reportedly said Thursday that high interest rates are a "tool of exploitation" and the central bank should cut them.

His comments came just hours ahead of a crucial central bank rate decision announcement.

The Turkish Lira, which had gained on rate hike expectations, tumbled over 3 percent following Erdogan's comments.

The TCMB is set to announce its latest interest rate decision at 7 am ET. The bank was widely expected to raise the key rate sharply to 20.75 percent from 17.75 percent.

Erdogan insisted that the central bank remained independent though his views on the link between interest rates and inflation remained unchanged, the Financial Times reported.

"Interest is the cause, inflation is the result," the FT reported Erdogan as saying at a gathering of small business owners in Istanbul.