Seven members of the monetary council of Hungary's central bank voted to cut the base interest rate by 20bps to a new historic low of 3.20% at their meeting on November 26 , minutes from the session showed. There was only one vote in support of a 10bps rate cut. The central bank slowed the pace of the rate cutting cycle already in August 2013 , as it reduced the base rate by 25bps in each of the preceding twelve months. At the November meeting, central bankers agreed that Hungary's economic growth will likely expand gradually in 2013, followed by a further pick-up in growth next year. The council expects external economic activity to strengthen and weak domestic demand conditions to persist. As a result, inflationary pressures in the economy will likely remain subdued in the medium term. The rate setters agreed that perceptions of the risks associated with the Hungarian economy have slightly deteriorated over the past month. The global financial environment remained supportive on the whole, but volatile sentiment in global financial markets continued to pose a risk, which in turn called for maintaining a cautious approach to policy. Several central bankers noted that the ECB's latest monetary ease and possible future liquidity-boosting measures pointed to the persistence of this supportive financial environment. At the end, 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.
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