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Rate-setters expected to end tightening cycle on Monday

Analysts polled by business daily Napi Gazdaság expect the National Bank of Hungary's (MNB) rate-setters to end a tightening cycle at a meeting on Monday, the paper said.

Lower-than-expected January consumer price inflation, a stable forint and lower yields point to an end to the tightening cycle started in November, the paper said.

Hungary's January CPI was 4.0%, well under the 4.3% estimate by analysts. János Samu, an analyst for brokerage Concorde, said both the size and the structure of January inflation was favourable from the view of keeping rates on hold. The forint has stabilised around 270 to the euro and the yield environment has improved, he added.