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Turkey’s Central Bank has signaled that it will continue “measured” reductions in interest rates, while preserving its year-end inflation forecast at 7.6 percent, pumping an optimism boost to markets and raising the demand for stocks.

Turkey’s economy minister called on June 23 for a sharp rate cut a day before a meeting of the Central Bank.

“I don’t think anybody in Turkey will want high interest rates,” Nihat Zeybekci said.

“We expect the interest rates to be lowered as soon as possible” to the level before the big rate increase in January, he added.

Turkey’s Central Bank could review interest rates as soon as this month if it is convinced that the outlook for inflation is improving significantly, Governor Erdem Başçı has said.

He said that economic growth was on track and that Turkey’s current account deficit - its main economic weakness - would narrow “swiftly” this year as the economy keeps rebalancing.