December 14, 2012 / 5:06 PM / 5 years ago

Turkish lira eases ahead of expected rate cut

ISTANBUL, Dec 14 (Reuters) - The Turkish lira eased in thin trade on Friday ahead of an expected cut in interest rates next week, while bond yields were steady and stocks marginally lower.

By 1525 GMT, the lira had weakened to 1.7816 against the dollar from 1.7805 late on Thursday. Against its euro-dollar basket, it eased to 2.0583 from 2.0556.

Analysts expect the central bank to cut its policy rate, the one-week repo rate, by 25 basis points and its overnight borrowing rate by at least 25 basis points at its next policy meeting on Dec. 18 to boost a slowing economy.

The yield on the two-year benchmark bond closed at 5.74 percent, slightly down on Thursday’s close of 5.75 percent but still some way off a record low of 5.67 percent hit last Wednesday.

Istanbul’s main share index closed down 0.87 percent at 76,293 points, underperforming a fall of 0.05 percent in the global emerging markets index. (Writing by Seltem Iyigun; Editing by Nick Tattersall)

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