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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