At the outset, we need to grasp the significance of the sentence preceding the one you quoted:
There is none beside me. I am the Lord, and there is none else.
This is the Lord God Almighty, creator of time, space, matter and all life. He is sovereign over His creation – which means God is sovereign over humanity and has been since the beginning of human history.
We also need to put Isaiah 45:7 into context. Here God is promising to bring calamity on the pagan empire of Babylon through King Cyrus for the sake of His chosen people—to restore them to their homeland and rebuild their ruined cities. (Isaiah 41:8–10; 44:26; 45) Now let’s consider what the Hebrew word ra’ means as translated into English as “evil”.
The term can be used in the sense of moral evil, such as wickedness and sin (Matthew 12:35; Judges 3:12; Proverbs 8:13; 3 John 1:11), or it can refer to harmful natural events, calamity, misfortune, adversity, affliction, or disaster. It is in this second sense that Isaiah speaks, and his meaning is reflected in most modern Bible translations of Isaiah 45:7 (emphasis added): “I make success and create disaster” (HCSB); “I make well-being and create calamity” (ESV); “I send good times and bad times” (NLT).
Is Isaiah 45:7 speaking of moral evil? No. Moral evil is the choice that people make contrary to God’s good purposes. Moral evil does not conform to God’s will and for his plans to bless all who obey Him. Moral evil is the direct opposite of our creator’s good and perfect will for those of his creation who love and obey Him.
What some people fail to realise is that God rules sovereignly over all things, including evil. Only God can (and will) destroy evil, permanently. But God is not the creator of moral evil.
Additional information on theodicy, the problem of evil, and why God allows evil to exist: https://www.gotquestions.org/theodicy.html
EDIT: As suggested by Maverick, Strong's Exhaustive Concordance lists 16 meanings of the Hebrew word ra' and I agree with his conclusion that, from a biblical perspective, it is impossible that God created moral evil. https://www.biblestudytools.com/lexicons/hebrew/kjv/ra.html
Another Bible verse which is a promise towards God's chosen people:
For I know the thoughts that I think toward you, saith the LORD, thoughts of peace, and not of evil, to give you an expected end. (Jeremiah 29:11 KJV)