Governor Erdem Basci said last week the bank would consider trimming short-term rates if the real exchange rate topped 120 on its index, which measures the weighted average of domestic prices relative to those of trade partners.
Lower-than-expected April inflation data on May 3 also strengthened expectations of further rate cuts.
Economic growth slowed sharply to 2.2 percent last year and the central bank has been trying to spur the economy since mid-2012, embarking on a series of rate cuts last September.
The bank kept its inflation forecasts unchanged for this year and next on April 30 and said it would consider a measured cut in interest rates if the lira appreciated further.
The bank will hold its next policy meeting on May 16.
It cut its three main interest rates more deeply than expected last month in a bid to stimulate growth and guard against hot money fuelling a sharp rise in the lira.