GKI projects slowing growth, gradual upgrades in 2015

MNB

Hungarian economic research institute GKI left its economic growth forecast for the country unchanged at 2% in 2015, a slowdown compared to last year, and GKI analysts expect ratings agencies to continue to gradually upgrade Hungaryʼs debtor rating in their latest monthly projection, institute Chairman András Vértes said today according to Hungarian news agency MTI.

In connection with Tuesdayʼs rate-setting meeting of the National Bank of Hungaryʼs (MNB) Monetary Council, Vértes said GKI predicts the MNB will launch another series of interest rate cuts, resulting in the cut of the base rate by 30-50 basis points from its current 2.1%.

Vértes said consumption will grow faster in 2015 due to the one-off effect of the conversion of foreign currency loans into forints, but economic growth will slow to around 2% as investments stagnate, adding that this trend could continue in 2016.

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