Hungary: Further Cuts to Come

Politics ♦ Published: November 21, 2013; 21:22 ♦ (Vindobona)

György Matolcsy, governor of the Hungarian National Bank MNB, stresses that there is room for further base rate cuts.

Hungary: Further Cuts to Come / Picture: © Wikipedia / kormany.hu

A further base interest rate reduction is rather likely in Hungary. At the moment, the reference rate stands at its historic low of 3.4%. György Matolcsy argues that there is still a downward potential.

According to him, most new loans will finance new investments. As a result, Matolcsy is optimistic that the easing program will show first positive results soon. The monetary…