Turkey’s central bank lowered its key interest rate by 2.5 percentage points to 45% on Thursday, in its second rate cut in as many months as official figures showed inflation was easing. The bank’s Monetary Policy Committee said it was reducing its benchmark one-week repo rate to 45% from the current 47.

"I don't see any grounds for cuts. ... We are not cutting rates because we are not at the target. We are not bringing inflation to the target," said Tyrowicz, considered one of the hawks on the Monetary Policy Council (MPC).

The central bank reduced its one-week repo rate to 45% from 47.5% as a cycle of higher borrowing costs bears fruit in cooler price rises.