MNB cuts rate 20bp – more than expected
The Monetary Council of the National Bank of Hungary (MNB) announced today that it would continue its monetary easing of the forint by lowering the central bank base lending rate by 20bp, which is twice as large as the reduction predicted by analysts last week.
As an immediate effect of the rate cut, the Hungarian forint weakened from around 309.2 to 309.9 to the Euro.
Council members speculated that “further cautious easing of monetary policy will follow”, but they added that the base rate had “significantly approached a level which ensured the medium-term achievement of price stability and a corresponding degree of support for the economy”.
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.