The National Bank of Hungary’s Monetary Council said members could consider a further reduction in rates if improved financial market sentiment persists and the inflation target is in line with the central bank’s mid-term target, according to the condensed minutes, published on Wednesday, of a rate-setting meeting on December 18.
“In terms of the Council’s future interest rate decisions, members agreed that the Council should consider a further reduction in interest rates if the improvement in financial market sentiment continued and the medium-term outlook for inflation was consistent with the 3% target,” according to the minutes.
The minutes confirmed the market’s assumption that the Council’s four external members outvoted the three internal members to cut the central bank’s key rate by another 25bp — to 5.75% — for the fifth monthly meeting in a row.
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