Goldman Sachs: MNB could cut back on its aggressive easing tactics

Food

Investment banking firm Goldman Sachs said yesterday it is not convinced that Hungary始s central bank will slash the interest rate as much as some are expecting. 聽Price declines likely bottomed out in February, and the relatively strong forint currency could reverse some of the annual inflation declines for April and May, the investment bank said in a note yesterday.

Goldman Sachs analysts say that food and energy price declines will start to wane and inflation will return to positive territory by the end of the third quarter, and that it will then accelerate quickly at the very end of the year. Goldman Sachs sees Hungary始s central bank lowering its key rate to about 1.6% in 2015 versus the current 1.95%. "We think that expectations of a turnaround in inflation and solid growth will reduce the National聽Bank of Hungary始s appetite for more aggressive easing," the bank said.

ADVERTISEMENT

Hungarian Meat Companies Get Export Clearance from Philippin... Trade

Hungarian Meat Companies Get Export Clearance from Philippin...

Gov't to Launch HUF 700 bln Business Credit Scheme聽 Government

Gov't to Launch HUF 700 bln Business Credit Scheme聽

Kazakhstan, Hungary Launch Joint Venture Capital Fund Deals

Kazakhstan, Hungary Launch Joint Venture Capital Fund

Avatar: The Way of Water Breaks Box Office Record in Hungary Art

Avatar: The Way of Water Breaks Box Office Record in Hungary

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.