ISTANBUL Turkey's central bank said on Thursday it would maintain cautious monetary policy given inflation expectations, after lowering interest rates for the seventh straight month in line with calls from President Tayyip Erdogan for cheaper credit.
It also said in a statement that the core inflation trend was expected to improve gradually while developments in the inflation outlook necessitate keeping a tight liquidity stance.
The bank cut the overnight lending rate, the highest of the multiple rates it uses to set policy, by 25 basis points to 8.25 percent. It kept its benchmark one-week repo rate on hold.
(Writing by Daren Butler; Editing by David Dolan)