ISTANBUL, Oct 9 (Reuters) - The Turkish lira was slightlyweaker and bond yields inched down on Tuesday as a surprise fallin August industrial output and a cut in official growthforecasts suggested the central bank will keep monetary policyloose for longer.
Turkish industrial production fell 1.5 percent year-on-yearin August, data from the Turkish Statistics Institute showed onTuesday, confounding a Reuters poll forecast for a 2.5 percentrise.
Turkey's government meanwhile cut its growth forecast for2012 on Tuesday to 3.2 percent from 4 percent, and its 2013projection to 4 percent from 5 percent.
By 1451 GMT, the lira had weakened to 1.8180 against thedollar , from 1.8115 late on Monday. Against itseuro-dollar basket , the lira eased to 2.0814,from 2.0802.
The central bank cut its overnight lending rate by 150 basispoints to 10 percent in September and hinted it could furtherease to support a slowing economy.
The yield on Turkey's two-year benchmark bond
closed at 7.63 percent, slightly down fromMonday's close at 7.68 percent.
Turkey's main share index closed up 0.93 percent68,062 points, outperforming a 0.01 percent fall in the emergingmarkets index . Buying in shares accelerated as theindex avoided a fall to below 67,500 points, which is animportant technical level, analysts said.
(Writing by Seltem Iyigun; Editing by Catherine Evans)
Keywords: MARKETS TURKEY/CLOSE