Analysts predict 10 bp rate cut next Tuesday

Analysis

Twelve of 19 analysts polled by Reuters expect the National Bank of Hungaryʼs Monetary Council to cut the central bankʼs key rate by 10bp to 1.40% at a policy meeting next Tuesday, the wire service said yesterday. 

Four of the analysts projected the rate-setters would continue the easing cycle at an unchanged pace, reducing the base rate by 15bp, and three said it would keep rates on hold.

The Monetary Council issued guidance for further "slight" easing after the previous monthly policy meeting in June. "The overwhelming majority of decision-makers deemed it necessary to change the forward guidance and agreed that the medium-term achievement of the inflation target pointed in the direction of a further, slight reduction in interest rates," according to the minutes of the meeting.

Earlier, the Councilʼs guidance had been for "cautious easing... as long as it supports the achievement of the medium-term inflation target".

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.

Support the BBJ