Underlining that recent data indicate that recovery in economic activity continues, the statement said: "Sectoral diffusion of economic activity continues to improve. However, investment demand remains weak. While favorable effects of improved competitiveness prevail, weakening global economic outlook tempers external demand. As the contribution of net exports to economic growth declines, economic recovery is expected to be sustained with the help of the ongoing disinflation process and improvement in financial conditions. Current account balance, which has recently recorded significant improvement, is expected to maintain a moderate course with the contribution of supportive policy measures."

"Weakness in global economic activity and low levels of global inflation strengthen expectations regarding the continuation of expansionary monetary policies in advanced economies," it said, adding that current global financial conditions and the recent partial improvement in expectations regarding global trade support the demand for emerging market assets and the risk appetite.

It noted that inflation outlook continued to improve and inflation expectations sustained their widespread decline.

"The improvement in macroeconomic indicators, inflation in particular, supports the fall in country risk premium and helps contain cost pressures," it underlined.

It stated that the course of inflation is considered to be broadly in line with the year-end inflation projection and the Committee decided to make a measured cut in the policy rate.

"It should be emphasized that any new data or information may lead the Committee to revise its stance," It concluded.

ILKHA