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Market expects Hungary's central bank to slow monetary easing pace in February.

February 17, 2014

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 2.75% at its next rate setting meeting scheduled for Tuesday (Feb 18), according to the majority of analysts polled by Reuters, Hungary AM informed. A total of 16 of 22 analysts projected a 10bps cut, 3 voted for a 15bps reduction and the remaining 3 participants said they expect the central bank to keep rate unchanged.

The decision of Hungary's central bank to cut the base interest rate by 15bps to a new historic low of 2.85% at its meeting on January 21 was approved with the votes of seven members of the Monetary Council, minutes from the session showed. There was one vote 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.

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Source: IntelliNews - Weekly Reports

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