The NBH on hold for the first time after many rate cuts
The National Bank of Hungary holds rate setting meeting today at 14.00 CET. The Council cut base rate by 20bp from 2.3% to 2.1%, which was a surprise for the market, but the statement emphasized that the base rate reached the level, which is in line with the inflation outlook and in the meantime helps the economic growth as well. So NBH finished the 24 months long rate cut cycle (started in August 2012 at 7% key rate) and it would like to keep the base rate at the current level till end-2015. Of course the statement left the door open on both side, so if the environment is changes either further cut or hike can be delivered.
Read the full report: FX Daily