The National Bank of Hungary's Monetary Council is expected to keep rates on hold at 6.00% at a meeting on Tuesday, October 25, according to a poll of analysts by Reuters.
All 23 of the analysts in the poll, conducted on October 19-20, said the Monetary Council would leave the base rate unchanged.
"The median projection of analysts showed that due to a recent rise in risk premiums on Hungarian assets, the bank could keep its interest rates unchanged at least until the end of next year despite a slowdown in the economy, " Reuters said of the poll.
The Monetary Council members kept the base rate on hold for the eight month in a row at a meeting in September. Most of the members agreed that the inflation outlook would provide room to ease monetary conditions, judging from real economic developments, but the sharp deterioration in global risk perceptions prevented this from materializing, according to the minutes of the meeting.