ANKARA: Turkey's central bank on Tuesday cut one of its main interest rates by 50 basis points, in the hope of further stimulating growth against a background of declining inflation.
This is the third rate cut since new governor Murat Cetinkaya took the reins at the nominally independent central bank in April.
The central bank said the overnight lending rate was trimmed to 9.0 percent from 9.5 percent and its one-week repurchasing rate remained stable at 7.5 percent.
The overnight borrowing rate also remained intact at 7.25 percent, it said in a statement on its website.
President Recep Tayyip Erdogan has often pressured the bank to lower interest rates in order to stimulate growth, casting a shadow over its independence.
Economists have also warned a dramatic cut would push up inflation but the bank has been given greater leeway by a significant easing in inflation rate which stood 6.58 percent in May.
The rate cut is likely to please Erdogan, who is aspiring to propel Turkey among the world's top 10 economies by 2023.
Turkey's economy grew a robust 4.8 percent in the first quarter of this year, continuing its resilient performance from 2015.
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