Hungary’s Central Bank Gov Matolcsy Sees Further Room To Manoeuvre On Rates
- 23 May 2014 9:00 AM
Hungary’s central bank has room to manoeuvre on rates and there is a possibility of further small cuts, central bank governor György Matolcsy said on Thursday. He told a business event in London that the central bank’s monetary easing cycle started from a 7% base rate and it is currently at 2.5%.
London analysts are in consensus that contrary to past expectations, the central bank has not yet ended its easing cycle. According to some City projections, the base rate may be reduced to 2.0%.
Matolcsy told MTI that he considered the latter projection “excessive”.
The end point of the easing cycle will depend on the Monetary Council’s assessment of the situation, he added. Commenting on the inflation figure of -0.1% in April, he said he was not.
Source www.hungarymatters.hu
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