The rate hike came in the first policy meeting under new Central Bank Governor Hafize Gaye Erkan.
The central bank's net reserves rose to $9.19 billion in the week to June 23, its biggest rise on record.
Although the central bank's reserves have rebounded since mid-June, state banks are still selling dollars to meet demand from maturing lira deposit accounts known as KKM.
Authorities were not seeking to support the lira and the central bank maintained its stance of not selling via state banks, the person added, requesting anonymity.
"The committee evaluated that the current monetary policy framework is far from achieving the 5% inflation target, given the inflation outlook and upside risks," the central bank said.
Persons:
Tayyip Erdogan, Central Bank Governor Hafize Gaye Erkan, Erkan, Erdogan, Nevzat Devranoglu, Jonathan Spicer, Daren Butler, Christina Fincher
Organizations:
Central Bank Governor, Reuters, Authorities, stoke, Thomson
Locations:
Turkey, ANKARA