Hungary VAT cut could help CPI outlook, make room for rate cuts

"The Hungarian cabinet has decided to lower the VAT rate on certain labour intensive services, but is yet to determine whether these will be moved into the 5% or 15% VAT brackets, from 20% at present. While the move may push down the headline CPI figure by about 0.3-0.9%, the impact on the budget is set to be less amicable, said Ivailo Vesselinov, analyst at DrKW in London on Wednesday.

22.02.2006

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