23 Jul 2014
Deflation prompted another rate cut in Hungary – Danske Bank
FXStreet (Edinburgh) - Jens Pedersen, Analyst at Danske Bank, commented the recent decision by the Hungarian central bank.
Key Quotes
“The Hungarian central bank yesterday cut its key policy rate by 20bp to 2.10%”.
“We expected a 10bp rate cut and this was also the consensus expectation”.
“Overall, the more aggressive rate cut is justified given that we now have outright deflation in Hungary and more rate cuts are certainly in the pipeline”.
“Overall, this does not change our overall expectations for monetary policy in Hungary and for the forint”.
Key Quotes
“The Hungarian central bank yesterday cut its key policy rate by 20bp to 2.10%”.
“We expected a 10bp rate cut and this was also the consensus expectation”.
“Overall, the more aggressive rate cut is justified given that we now have outright deflation in Hungary and more rate cuts are certainly in the pipeline”.
“Overall, this does not change our overall expectations for monetary policy in Hungary and for the forint”.