News service MTI this morning broke down the results thusly: “Thirteen of the 20 economists polled by the paper expect the 0.20% cut, two see a 0.15% reduction and four expect a 0.10% easing. Just one expects rates to stay on hold.”
According to the Council, higher volatility in sentiment on financial markets justifies “maintaining a cautious approach”: “In the Council’s judgment, the significant reductions in interest rates so far and the volatile conditions in financial markets might justify changing the pace or extent of policy easing in the coming months.”
Late last week, Reuters’ own poll of 21 analysts had a majority figuring that the National Bank of Hungary (MNB) would be dropping its base rate to the new record low of 3.60% tomorrow. General sentiment among these analysts was the rate-setters will be encourage to set the rate lower due to the U.S. Federal Reserve’s decision of last week to retreat from its campaign of buying up US dollar-based bonds and thus ultimately decrease the forint’s value against the dollar.
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