Hungary trims base rate by 15 bps to 1.05% under ‘watchful approach’

By Susanna Moon

Chicago, April 26 – The Monetary Council of Hungary’s Magyar Nemzeti Bank voted to cut the central bank base rate by another 15 basis points at a meeting held Tuesday, this time to 1.05% from 1.2%.

As the country’s economic growth continues there is still unused capacity in the economy, which results in a disinflationary impact, according to an announcement.

The annual inflation rate and core inflation both fell in March, compared with the previous month.

“Inflation remains persistently below the bank’s target,” the release noted.

Worldwide, the financial markets have shown swings because of expectations for the monetary policies of leading central banks and news stemming from oil markets.

The uncertainty merits “a watchful approach to monetary policy,” the bank said.

The bank said on March 21 that it decided to trim the central bank base rate by 15 bps from 1.35%.

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