MNB: Room for further rate cuts is narrowing

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The room for further central bank rate cuts is “increasingly narrowing”, the National Bank of Hungaryʼs (MNB) managing director for monetary policy Barnabás Virág told economists on Saturday, Hungarian news agency MTI reported this morning .

The central bankʼs recent rate cuts have proved to be sustainable, Barnabás said at the National Meeting of Young Economists in Pécs. 

The MNB’s policy makers decided to lower the central bankʼs key rate by 15 bps to 1.2% at a meeting in March, making a cut for the first time since last summer and signalling possible further easing.

“Interest rate cuts will continue as long as monetary conditions become consistent with the sustainable achievement of the inflation target,” the rate-setters said in a statement after the meeting.

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