Reuters Poll: MNB likely to cut base rate by 15 basis points


Photo by Jessica Fejos

The National Bank of Hungary (MNB) could cut its base rate by 15 basis points at its April 26 meeting and cut it further in the coming months, according to a Reuters poll conducted between April 18-20, Hungarian news agency MTI reported today.

(Photo: Jessica Fejos)

Out of the 21 analysts surveyed, 19 projected a 15 basis point reduction to 1.05% in the 1.2% base rate next week, and two analysts forecast a 10 basis point cut, MTI said.

According to the median forecasts, the base rate could bottom out at 0.75% in the coming months, remain at that level throughout the year and rise to 0.9% by the end of next year, MTI noted.

Hungaryʼs central bank lowered its main interest rate in March by 15 basis points, resuming the rate cuts it ended in July 2015.

It also flagged further easing measures including rate cuts and its deputy governor Márton Nagy said a weaker forint would support exporters and help “desired inflation” return, according to the news agency.

“The exchange rate will absolutely remain a key factor... as long as the forint stays at 310 or firmer, the bank can cut rates further,” Gergely Szabó Fórián, portfolio manager of Pioneer Investments reportedly said.

“A change in the international inflation environment, a reversal in the commodities price decline could also bring forward the end of the rate cuts,” Fórián added.

The analysts forecast a pick-up in inflation to 1.6% by December of this year, 2.4% by the end of 2017 and 2.65% by the end of 2018, the news agency added.


EBRD Sees Hungary GDP Growth Slowing to 1.5% in 2023 Analysis

EBRD Sees Hungary GDP Growth Slowing to 1.5% in 2023

Horthy Statue to be Unveiled in Parliament Parliament

Horthy Statue to be Unveiled in Parliament

UPS Appoints Regional Director Appointments

UPS Appoints Regional Director

Completion of Metro Line M3 Renovation Delayed City

Completion of Metro Line M3 Renovation Delayed


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.