Hungary's MNB Cuts Base Rate To New Record Low

  • 28 May 2014 9:00 AM
Hungary's MNB Cuts Base Rate To New Record Low
The MNB’s monetary council met analysts’ expectations yesterday by lowering the base rate from 2.5% to an all-time low of 2.4%. The rate cut was supported by the low inflation of around 0% and the strengthening forint, observed analyst Ákos Horváth of brokerage Equilor.

The development of inflation suggests further rate reductions, but, as the latest GDP data exceeded forecasts and the interest premium on forint bonds is evaporating, the end of the rate cuts appears quite near, Horváth added.

Source: Hungary Around the Clock

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