The NBH cuts as expected and signals more to come
The National Bank of Hungary moderated its interest base rate by 10 bps again from 2.4% to 2.3%, which was fully in line with market expectation and consensus. The NBH started the rate cut cycle in August 2012 from 7%, so it was 23rd time MPC cut its base rate. The staff also released the new inflationary report, in which they forecasted 0% Y/Y average inflation for 2014 and 2.5% Y/Y for 2015. The GDP prognosis is 2.9% Y/Y growth for this year and 2.5% Y/Y for next year.
Read the full report: FX Daily