POLL-Turkish cenbank to cut rate by 50 points or more

* reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/cb-polls?RIC=TRINT%3DECI poll * Economists revising forecasts after Fed cut

* One economist expects 150-bp cut after Fed cut * Bank has eased by 1,325 points since July

By Ali Kucukgocmen ISTANBUL, March 16 - Turkey's central bank is expected to cut its policy rate by at least 50 points to 10.25% this week, a Reuters poll showed on Monday, extending an aggressive easing cycle after the spread of coronavirus prompted massive monetary stimulus globally.

The majority of the 14 institutions polled by Reuters submitted their forecasts prior to the U.S. Federal Reserve's decision on Sunday to slash interest rates to near zero in an effort to blunt the economic impact of the spread. One economist predicted on Monday that Turkey's central bank would cut rates by 150 basis points, which was the high end of the range of estimates in the poll.

Two others previously predicted no change, while the median response was for a 50-point cut that would lower the policy rate to 10.25% from 10.75%. Given the rising expectations of a sharper cut, Reuters will continue to poll economists ahead of the policy meeting on Thursday.

The bank has aggressively cut its policy rate since July, when it stood at 24%. President Tayyip Erdogan, a self-described "enemy" of interest rates, has called for single digits in 2020, renewing concerns over the independence of the bank. Inflation hit a 15-year high in October 2018 before briefly declining to single digits last autumn. It has since risen and stood at 12.37% in February, above the policy rate, meaning lira depositors face a negative rate of return.

The sharp fall in global oil prices this month will ease pressure on inflation, paving the way for more Turkish monetary easing. But a sharp decline in the lira, which has lost nearly 7% of its value this year, could lift inflation via imports. Oyak Securities said in a note that it expected the bank to cut by at least 100 basis points to limit the effects of the coronavirus on economic activity.

"We expect the (bank's) statement to address the risks associated with coronavirus, as well as that the decline in oil prices will reduce cost pressure," it said in a note to clients. "On the other hand, exchange rate developments will be listed among the factors that will affect inflation negatively."

The central bank is expected to announce its rate decision on Thursday, March 19 at 1100 GMT.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)