BUDAPEST: The National Bank of Hungary (NBH) cut its key rate by 15 basis points to 1.95% in last month. The cut was the first rate changes since the central bank wound up an easing cycle last summer. Balog said the new easing cycle would “definitely” consist of several steps, though not necessarily 15bp ones. “I would not like the main message to be that (Hungarian rate cuts) will be always 15 basis points. Could be a bit bigger or a bit smaller,” he said.
Balog also said he could not rule out an extension beyond the end of 2015 of the NBH’s Funding for Growth Scheme, though it did not want to exceed the 2,000 billion forint (EUR 6.67bn) programme cap.
