ISTANBUL, Feb 19 (Reuters) - Turkey's central bank cut both its overnight borrowing and lending rates by 25 basis points on Tuesday in a bid to prevent speculative capital inflows from boosting the lira currency too sharply.
The bank reduced the borrowing rate to 4.50 percent from 4.75 percent and the lending rate to 8.50 percent from 8.75 percent. But it kept its one-week repo policy rate, which it cut by 25 basis points in December, unchanged at 5.50 percent.
All 12 economists in a Reuters poll had expected the bank to keep its policy rate on hold at 5.50 percent, while five said they were expecting the bank to trim both ends of the interest rate corridor by 25 basis points. Eleven had forecast a rise in lira required reserves.
(Reporting by Seda Sezer; Editing by Nick Tattersall) Keywords: TURKEY RATES/
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