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Analysts expect 25 bp rate cut on Monday

Analysts polled by Reuters expect the National Bank of Hungary's Monetary Council to cut the base rate another 25 basis points (bp) to 5.25% at a meeting on Monday.

In the poll, conducted on April 19-21, 23 of 27 analysts predicted a 25 bp cut at the meeting.

The Council has cut the base rate a combined 400 bp at each of its meetings since July, bringing it to a historical low.

The meeting on Monday will come a day after the second round of general elections in which opposition Fidesz is expected to win a two-thirds majority. Most analysts said the bank had no reason to keep rates on hold after cutting them every month since July, as long as investor appetite for forint assets does not fall. (MTI - EConews)