The Monetary Council (MC) of Hungary’s central bank is expected to cut the base interest rate by 10bps to a new record low of 2.90% at its next rate setting meeting on Tuesday (Jan 21), the majority of analysts polled by portfolio.hu said.
However, respondents were fairly united about the size of the rate cut, with only two out of eleven expecting the central bank to keep monetary easing pace with a 20bps cut.
In a Reuters poll, 16 of 20 analysts expect a 10bps cut and four projected a 20bps cut.
The Council cut the base rate by 25bps in each of its monthly rate-setting meetings for twelve months from August 2012 until last August, when it started making 20bps reductions each month. The council’s decision to cut the base interest rate by 20bps to a new historic low of 3% at its meeting on December 17 was approved with the votes of seven members, while two voted in support of a 10bps rate cut.
The rate setters concluded that further cautious easing of monetary conditions might follow, considering the outlook for inflation and the real economy and taking into account perceptions of the risks associated with the economy. They agreed that the pace of monetary easing could be slowed down.
Related Articles
Druzhba oil flow to Slovakia and Hungary is renewed
The oil flow from the Russian Druzhba pipeline was renewed late on August 19. “The flow of oil to Slovakia is standard at the moment,” the country’s Minister of Economy Denisa Saková (Hlas) ... more
US Westinghouse could develop electricity storage site near Slovak Gabčíkovo hydroelectric power plant
US power company Westinghouse is reportedly in talks with the Slovak government to develop a new type of electricity storage site near the Gabčíkovo hydroelectric power plant (HPP) on the Danube ... more
Viktor Orban hints at possible EU exit scenario in conversation with hard-right platform
Prime Minister Viktor Orban said Hungary's EU membership remains worthwhile for now, but there could come a time when this changes. "There could theoretically be a point when it's no longer worth ... more
Most Read
-
Renewable capacity growth is faster than ever, but more acceleration needed to meet Paris 2030 goal, says IEA
1 year ago
-
Kyrgyzstan abandons attempt to rescue Russian climber trapped on icy summit of country’s highest mountain
20 days ago
-
BERTRAND: China after Communism, preparing for a post-CCP China
1 month ago
-
UKRAINE REMONT: The battle to build: signs of recovery in Ukraine's construction industry
5 months ago