Hungary: Easing Cycle Nears Its End

Politics ♦ Published: October 4, 2013; 23:52 ♦ (Vindobona)

After the interest cut last week, there is still downward potential. However, MNB must be cautious, Hungary´s rate setter Gyula Pleschinger told WSJ.

Hungary: Easing Cycle Nears Its End / Picture: ©

Hungary´s interest rate has reached a record low. Last week, Hungarian National Bank (MNB) has lowered to base rate by 20bps to 3.60%. At the beginning of the easing cycle, the base rate stood at 7.00%.

After a GDP contraction of 1.7 in 2012, Hungary´s GDP rose 0.1% in the first half of 2013. In the whole year, economic growth is expected to come at 0.2%. Although Hungary´s…