The last thing he needs as the presidential election approaches is a marked economic slowdown.
Central Bank Governor Erdem Basci said last month he saw room for a gradual lowering in rates but ruled out a deep cycle of easing, saying policy would stay tight until there was a clear improvement in the inflation outlook.
Analysts had expected rate cuts further ahead once headline inflation started ticking lower, forecasting it would start to fall from mid-year. Inflation rose a higher-than-expected 9.38 percent year-on-year in April.
The central bank also expects inflation to begin falling in June but still sees it at an above-target 7.6 percent at year end. The bank has repeatedly said it will keep monetary policy tight until the inflation outlook improves significantly.
It raised rates sharply at the end of January to combat a fall in the lira to record lows amid an emerging markets sell-off and a corruption scandal embroiling Erdogan's inner circle, a tight stance the prime minister is eager for it to unwind.
The bank has already been reducing average borrowing costs without resorting to rate cuts by providing more funding to the market through its one-week repo auctions at a fixed simple rate of 10 percent, rather than the 12 percent marginal lending rate.
The average cost of borrowing has fallen to around 10.0 percent as a result, from levels of around 10.2-10.3 percent in late March.
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