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Hungary: Monetary Policy Eases Further

Politics ♦ Published: November 26, 2013; 19:51 ♦ (Vindobona)

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Today, Hungary´s National Bank (MNB) has cut the two-week deposit rate to 3.2% from 3.4%. The government is optimistic that the monetary easing will help Hungary´s economy.

Hungary: Monetary Policy Eases Further / Picture: © Vindobona.org

The rate cut was in line with the expectations. MNB´s monetary council began to cut interest rates in spring 2012. At that time, the base rate stood at 6.5%. According to the MNB, further cuts are possible. The current inflation situation and the modest economic growth allow further rate cuts, the monetary council stated.

In December, the MNB is expected to cut the base rate to…