Analysts predict 10 bp rate cut next Tuesday

Analysis

Twelve of 19 analysts polled by Reuters expect the National Bank of Hungary始s Monetary Council to cut the central bank始s key rate by 10bp to 1.40% at a policy meeting next Tuesday, the wire service said yesterday. 

Four of the analysts projected the rate-setters would continue the easing cycle at an unchanged pace, reducing the base rate by 15bp, and three said it would keep rates on hold.

The Monetary Council issued guidance for further "slight" easing after the previous monthly policy meeting in June. "The overwhelming majority of decision-makers deemed it necessary to change the forward guidance and agreed that the medium-term achievement of the inflation target pointed in the direction of a further, slight reduction in interest rates," according to the minutes of the meeting.

Earlier, the Council始s guidance had been for "cautious easing... as long as it supports the achievement of the medium-term inflation target".

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