UPDATE 2-Turkish cbank cuts rates 25 bps as expected

(Adds analysts comments, details)

By Daren Butler

ISTANBUL, Feb 14 (Reuters) - The Turkish Central Bank cut its benchmark interest rates by 25 basis points on Thursday, as forecast, and said monetary policy was supporting a fall in inflation despite recent rate cuts.

Economists said the statement indicated the bank was likely to keep cutting interest rates in the coming months, but with a close eye on inflation developments.

The bank cut its benchmark borrowing rate by 25 basis points to 15.25 percent, and lowered the benchmark lending rate to 19.25 percent from 19.50 percent.

Recently announced data showed moderate economic growth was continuing and the effects of the problems in global credit markets were limiting domestic demand, the central bank said.

"It is expected that the overall demand conditions in the coming period will continue to support the falling trend in inflation," the bank said.

The bank did not seem overly worried that inflation remained above its target and was likely to continue easing rates in the coming months, said Danske Bank senior analyst Lars Christensen.

"That said, the central bank is probably getting closer to pausing in its easing cycle - or at least slowing down the speed of monetary easing in the coming months," he said.