Hungarian Analysts See Continued Easing On Ties
- 23 Jun 2015 9:00 AM
Hungarian analysts expect the National Bank of Hungary to continue an easing cycle at a steady pace at a policy meeting. K and H chief analyst Dávid Németh said the central bank’s Monetary Council would probably reduce the base rate by 15 basis points to 1.50%. The cut is likely to be the last of the cycle on the chance that inflation rises faster than expected and reaches the NBH’s mid-term “price stability” target by the end of the year, he added.
ING Bank senior analyst András Balatoni also said rate-setters would probably decide on a 15bp cut, but added that the central bank’s shortterm outlook would determine its next step. At a policy meeting in May, the Monetary Council maintained their guidance for continued “cautious easing”.
“The overwhelming majority of decision-makers judged it necessary to maintain the previous forward guidance and agreed that cautious easing of monetary conditions might continue as long as it supports the achievement of the medium-term inflation target,” according to the minutes of the meeting.
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