Saying they did not expect this cut, analysts at Equilor reportedly added today that MNB could keep easing by 10-15% bps, down to around 1% by fall.
Since announcing the end of an easing cycle in June, the central bank kept the base rate on hold at 1.35%. But following a meeting in February, the Monetary Policy Council said further easing was possible in view of the low inflation rate, according to reports.
After the announcement of the rate cut, the forint weakened on the interbank market, MTI said. Before the meeting the forint was trading around 311.34 to the euro, after the meeting it jumped to 313.13, while it moved against the dollar from 277.40 to 278.98 and against the Swiss franc from 285.84 to 287.28, MTI said.
Producing journalism that is worthy of the name is a costly business. For over 30 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.
