Turkey's central bank trimmed its key interest rate by 25 basis points on Tuesday, taking action in the face of falling inflation and prompting a government with one eye on a June parliamentary election to call for steeper cuts.
The bank said it would keep monetary policy cautious until evidence was clear of a significant drop in the outlook for inflation, which is falling steadily but remains above the bank's target level.
The bank cut its one-week repo rate to 7.5 percent and lowered its overnight borrowing rate to 7.25 percent. It also cut its overnight lending rate by 50 basis points to 10.75 percent and its primary dealers' overnight borrowing rate to 10.25 percent.
Of 19 economists polled by Reuters, 14 had expected a cut in the repo rate, with eight forecasting a quarter of a percentage point, five 50 basis points and one 75 points.
"Given the rising volatility in food and energy prices, the (bank's policy) committee decided to keep the cuts in interest rates measured," it said in a statement.
Speaking in Budapest after the decision, Prime Minister Ahmet Davutoglu urged the central bank to carry out bigger rate cuts to boost the economy.