Tuesday, March 26, 2013

Hungary cuts base rate for eight time in a row to 5.0%

    Hungary's central bank cut its base rate by 25 basis points to 5.0 percent, it's eight rate cut in a row, the National Bank of Hungary (MNB) said in a brief statement.
    The rate cut was widely expected and it was the first council meeting chaired by the central bank's new president, Gyorgy Matolscy, former economy minister.
    The MNB has cut rates by 200 basis points since it embarked on its easing cycle in August 2012.
    Last month the central bank said it would consider cutting rates further if the outlook for inflation remains in line with its 3.0 percent target and the improvement in financial market sentiment is sustained.
    Hungary's inflation rate eased to 2.8 percent in February from 3.7 percent in January
    Earlier today a spokesman for the bank told media that the bank would no longer hold press conferences after the monthly rate-setting meetings.
    Hungary's Gross Domestic Product contracted by 0.9 percent in the fourth quarter, it's fourth quarterly contraction in a row, for an annual shrinkage of 2.7 percent.


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