Finance minister Tibor Draskovics welcomed the Monetary Council's 50 basis point rate cut on Monday, citing it as a sign that Hungary's economy is improving.
"The central bank, in agreement with the government and markets, believes that the economy is on the right development track," Draskovics said.
Draskovics said the government would pursue an economic policy that would allow the central bank to cut rates further in the future. He also noted that measures contained in the government's 2005 budget proposal aimed to cut inflation and improve the balance, responding to a warning by central bank president Zsigmond Jarai of the risks posed by Hungary's big deficit.
On the other hand, analysts provided mixed opinions on whether the central bank would cut rates further this year.
Source: Interfax
