Three of the analysts participating in the poll conducted between February 10 and February 13 said that the Monetary Council would cut the base rate by 15 basis points on Tuesday, while one analyst forecast a 5-bp cut. The remaining two analysts taking part in the poll predicted the MNB Monetary Council would leave rates on hold.
Reuters reported that some of the analysts participating in the poll said that the MNB could call a halt to its current rate-cutting cycle in March.
The MNB’s Monetary Council has reduced rates at each of its monthly rate-setting sessions since August 2012 – by 25 bp for twelve months through July 2013, then by 20 bp over the subsequent five months through December of last year before reducing the pace of cuts to 15 bp in January. Seven of the Monetary Council’s eight members voted in favor of the 15-basis-point cut in January, while one voted for a 10-basis-point cut.
Palotai: Monetary conditions must support real economy
MNB monetary policy director Dániel Palotai garnered some media attention based on the speculation yesterday, informing local business news outlet Világgazdaság that “Inflation expectations have retreated close to the 3% target.” Palotai added that “in an environment where the economy is performing below its potential and inflation pressure is moderate, achieving price stability in the medium term requires monetary conditions that support the real economy.”
This “real economy” would be assessed in the next MNB rate-setting meeting on Tuesday, when bank officials “will take into consideration and evaluate exchange rate changes.”
Producing journalism that is worthy of the name is a costly business. For over 30 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.
