ADVERTISEMENT

Monetary Council: “Further cautious easing of policy may follow”

Analysis

The National Bank of Hungary (MNB)’s Monetary Council was again divided over the scale of a rate cut made at a meeting on October 29, the condensed minutes of the meeting published yesterday show. 

The Council voted to cut the central bank’s key rate by 20bp to 3.40% at the meeting, in line with market expectations. The minutes show that eight of the Council’s nine members voted for the 20bp cut and one voted for a 10bp reduction; external member Gyula Pleschinger voted for the smaller cut, as he did at the previous two meetings.

“Considering the outlook for inflation and the real economy and taking into account perceptions of the risks associated with the economy, further cautious easing of policy may follow,” according to the minutes.

The Council reduced the base rate by 25bp every month for twelve months until August, when they started making 20bp cuts; the next rate decision will be made on November 26.

ADVERTISEMENT

1st Quarter Performance Stands out, but Slowdown is Likely Analysis

1st Quarter Performance Stands out, but Slowdown is Likely

Ministers in new Orbán gov't sworn in Parliament

Ministers in new Orbán gov't sworn in

Spring’s allergy season - the heat is on Interview

Spring’s allergy season - the heat is on

Airport bus fare could rise to HUF 1,500 City

Airport bus fare could rise to HUF 1,500

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 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.