Hungary’s central bank cut its key interest rates by another 15 basis points as expected by economists.
The Monetary Council of the Magyar Nemzeti Bank on Tuesday reduced the base rate to a record low 1.65 percent from 1.8 percent. This was the third consecutive reduction in rates.
The rate would take effect on May 27. It had lowered the rate by 15 basis points each in March and April.
With inflation set to return to positive territory shortly and the economy continuing to grow quickly, it looks like the easing cycle does not have much further to run, William Jackson, a senior emerging markets economist at Capital Economics said.
Inflation has remained in negative territory since September last year. Consumer prices fell 0.3 percent in April.
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