The Turkish Lira continued its freefall against the U.S. dollar in the European session on Thursday, following a rate reduction from the Turkish central bank for the third straight month despite stubbornly high inflation.

The Monetary Policy Committee of the Central Bank of the Republic of Turkey, governed by Sahap Kavcioglu, decided to cut the one-week repo rate by 100 basis points to 15.00 percent from 16.00 percent.

The bank had lowered the rate by 400 basis points since September amid political pressure.

"The Committee evaluated the analyzes on the decomposition of demand factors that can be affected by monetary policy, core inflation developments and the effects of supply shocks, and decided to reduce the policy rate by 100 basis points to 15 percent," the bank said in the statement.

The Turkish Lira hit a record low of 11.28 against the greenback, down from Wednesday's close of 10.61.

US Dollar vs TRY (FX:USDTRY)
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