Monetary policy: Hungary cuts interest rate to record low

BUDAPEST: Hungary’s central bank on Tuesday cut its main interest rate to a new post-communist record low of 1.35% from 1.5%, in its fifth such 15-basis-point drop in as many months. The cut was slightly larger than most analysts’ forecasts of 10 basis points. The bank’s rate-setting Monetary Council earlier said that its policy of ‘cautious easing’ would continue ‘as long as it supports the achievement of the medium-term inflation target’. Annual inflation in the non-eurozone EU member state was just 0.6% in June, after an eight-month period of negative inflation, which lasted until April.

 

Published in The Express Tribune, July 22^nd,  2015.

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