"Accordingly it is judged that a revision in monetary policy stance is needed and the policy rate was decided to be reduced," the bank announced.
It has kept the policy rate steady for the previous five meetings since incumbent governor Şahap Kavcıoğlu was appointed.
Addressing the normalization in demand composition globally, the bank said the increasing global inflation would be mostly temporary.
"Accordingly, central banks in advanced economies continue their supportive monetary stances and asset purchase programs."
The current tight monetary policy and strong external demand affected the current account balance positively, the bank said, adding: "The current account is expected to post a surplus in the rest of the year due to the strong upward trend in exports, and the strong progress in the vaccination program stimulating tourism activities."
Hurriyet Daily News