MNB rate-setters agree that easing cycle must continue

Analysis

The National Bank of Hungaryʼs (MNB) rate-setting Monetary Council agreed that it would send a "more robust signal" regarding the extension of the central bankʼs easing cycle at a policy meeting on April 21, according to condensed minutes released yesterday, state news agency MTI reported.  

Following a discussion on whether to "fine-tune" the Councilʼs forward guidance, the majority of members saw no case for making revisions. They did agree, however, that a stronger signal as to whether to continue the easing cycle could “adequately guide market expectations".

"The overwhelming majority of decision-makers judged it necessary to strengthen the former 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," according to the minutes. The Council voted unanimously at the meeting to cut the central bankʼs key rate by 15bp to 1.80%.

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