Analysts expect continued monetary easing today
Hungarian analysts expect the National Bank of Hungary to continue an easing cycle at a steady pace at a policy meeting today. K&H chief analyst Dávid Németh said the central bankʼs Monetary Council would probably reduce the base rate by 15 bp to 1.50% at the meeting today.
The cut is likely to be the last of the cycle on the chance inflation rises faster than expected and reaches the MNBʼs mid-term "price stability" target by the end of the year, he added. ING Bank senior analyst András Balatoni also said rate-setters would probably decide on a 15 bp cut, but added that the central bankʼs short-term outlook, would determine its next step.
At a policy meeting in May, the Monetary Council maintained their guidance for continued "cautious easing". According to the minutes of the meeting: "The overwhelming majority of decision-makers judged it necessary to maintain the previous forward guidance and agreed that cautious easing of monetary conditions might continue as long as it supports the achievement of the medium-term inflation target."
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.