BUDAPEST: The markets economists expect the National Bank of Hungary (MNB) to keep cutting the base rate, which is likely to bottom out well below the earlier expected 1.5%, Hungarian news agency MTI reported late yesterday.
In a note on the central bankʼs widely anticipated 15 bp rate cut that brought the base rate to 1.65% the day before, analysts at Bank of America-Merrill Lynchʼs London-based research unit, BofA Merrill Lynch Global Research, said the Monetary Policy Councilʼs statement released after the rates decision was in line with their expectations for more rate cuts ahead, though “given the external uncertainty in June” (in terms of the Greek debt crisis), the central bank may consider reducing the pace of cuts to 10 bp, MTI reported.
