Hungary cuts base rate by 10 bps to 2.4% amid low inflation 'anchor'

By Susanna Moon

Chicago, May 27 - The Monetary Council of Hungary's Magyar Nemzeti Bank voted to cut the central bank base rate by 10 basis points to 2.4% from 2.5% at its meeting on Tuesday.

The country's economic growth will likely continue, but output remains below potential, according to a bank notice.

Inflation continued to drop in April, and inflation pressures will remain moderate over the medium term, the bank said.

The outlook points to moderate inflationary pressures, reflecting weak domestic demand and low inflation in outside markets.

"The persistently low inflation environment may provide a firmer anchor for inflation expectations," the bank said.

The abridged minutes of the meeting will be published on June 11.

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