The Monetary Council of the National Bank of Hungary Rt (MNB) has cut the central bank base rate by 50 basis points, from 11.5 per cent to 11 per cent, in line with expectations.
MNB president Zsigmond Jбrai claimed that positive tendencies in both international and national markets, and decreasing inflation, were behind the decision to ease monetary policy.
The central bank also corrected its previous inflation forecast for 2004 and 2005 to 6.1 per cent and 4.4 per cent, respectively, because of rising oil prices and the faster rate of increase in wages. MNB’s forecast for economic growth in 2004 is 3.8%.
Source: Budapest Business Journal
