Wednesday, Turkey's central bank said its next rate cut would be on a measured way as past reductions have diminished the probability of inflation undershooting the end-year target.

The central bank said in its minutes of the monetary policy meeting held on April 16 that there is still a significant amount of uncertainty regarding the feedback between the financial and real sectors, suggesting that downside risks still remain in the economy.

Further, the bank said increasing financing requirement of the government might weaken the favorable impact of monetary policy decisions on economic activity.

According to the assessment of the monetary policy committee, it was important to commit to a credible medium-term fiscal framework that would ensure fiscal discipline and debt sustainability in order to reap the gains from short-term expansionary fiscal policy.

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