* Central bank target lending rate now at "minimum"

* Rate to remain at current level for prolonged period

* Bank introduces measures to complement monetary policy (Updates with fresh economist comment)

SANTIAGO, July 9 (Reuters) - Chile's central bank cut its target overnight lending rate by 25 basis points as expected on Thursday to a record low of 0.50 percent, and said it was introducing extra measures, including a liquidity facility for banks.

The central bank has now slashed its key rate by 775 basis points since the beginning of the year, leading the charge in Latin America to cut rates and counter the global economic crisis.

It also said the target overnight lending rate would remain at the current "minimum" level for some time.

"With today's decision, the monetary policy rate has been taken to its minimum level," the bank said in a statement, citing "bigger-than-expected capacity gaps and lower imported cost pressures."

Analysts had widely expected the bank to opt for a 25 basis point cut. It was the bank's seventh consecutive monthly rate cut.

"This was the right decision and very coherent with what they have been communicating," said Alberto Ramos, senior economist with Goldman Sachs in New York.