ISTANBUL, Sept 22 Turkey's central bank cut its
overnight lending rate by 25 basis points on Thursday, setting
aside concerns about inflation and possible ratings downgrades
after repeated calls from President Tayyip Erdogan for cheaper
The bank left its benchmark one-week repo rate unchanged at
7.5 percent but reduced the highest of the multiple interest
rates it uses to set policy to 8.25 percent.
All 18 economists in a Reuters survey had expected a cut in
the overnight lending rate, with 17 forecasting a 25 basis point
reduction and one predicting a 50 basis point cut.
Erdogan has led a campaign for cheaper credit in the hope of
boosting prospects for stronger consumption-led growth. The
economy grew a smaller-than-expected 3.1 percent in the second
quarter, data showed this month.
An attempted coup on July 15 has fuelled uncertainty on the
economic outlook, and sparked some concern about looming ratings
downgrades. Ratings agency Moody's said on Wednesday the shock
had largely dissipated. It expects to conclude its rating review
of Turkey within the next month.
(Writing by Daren Butler; Editing by David Dolan and Hugh