RTTNews - The Central Bank of the Republic of Turkey on Thursday cut the overnight borrowing rate, the country's key interest rate, to 8.25% from 8.75%. Further, it lowered the overnight lending rate to 10.75% from 11.25%.

The central bank said the tightness in financial conditions continue to some extent, and uncertainties regarding the impact of the problems in financial markets on the real economy persist,suggesting that downside risks still remain.

Therefore, the central bank indicated that it would be necessary for the monetary policy to maintain an easing bias for a long period of time, and said further rate cuts would be necessary in the short-term unless there was a robust recovery in economic activity. Moreover, the central bank said it may revise its stance if there was any new data relating to the inflation outlook.

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