The scale of the cut was the same as at the previous policy meeting one month earlier. After that decision, the Council judged that the “outlook for inflation and the cyclical position of the real economy pointed in the direction of a reduction in the policy rate and loose monetary conditions for an extended period”.
The National Bank of Hungary started easing on March 24, cutting the base rate from 2.10% to 1.95%, which caused no surprises to the market. Ever since the MNB has been easing by 15 basis points per step.
Analysts at Equilor expect another cut of 15 bp after June 23, which will result in a base rate of 1.50%, the same as in Poland. According to Equilor the MNB said that careful cuts could continue until it supports reaching mid-term inflationary aims.
Equilor expects the central bank to wait during the summer and see how the global economy advances before changing the rates again.
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.
