As a result of the fiscal discipline and the extent of the rise in the budget revenues, Goldman Sachs has lowered the European-standard (ESA) budget deficit target of 6.4% to 6.1% for this year, and from 5% to 4.5% for 2008. The investment firm also modified its GDP increase prognosis from the previous 2% to 2.3% for the whole year, and now projects a 2.7% growth for 2008. According to Goldman Sachs, inflation would reach 5% by the end of 2007, and 3.9% by the end of next year. GS predicted that Hungary’s central bank (MNB) would further cut its benchmark interest rate by a total of 1.25% during the upcoming months, which would eventually reach 6.5% by Q1 of 2008. (Gazdasági Rádió, Napi Gazdaság)