There is still room for monetary easing to help Hungary’s economy grow following the latest 20 basis point interest rate cut, Deputy Central Bank Governor Ferenc Gerhardt said on Wednesday, Reuters report.
Deputy Central Bank Governor Ferenc Gerhardt told a Reuters Investment Summit that a cautious easing allowed the bank room to react to events outside Hungary. “We are not in a situation to carve anything into stone apart from the year of our death,” he said, but added that the wiggle room in future rate cuts was up to 60 basis points “at the moment”. The bank’s Governor Gyorgy Matolcsy earlier gave a 3.0-3.5 percent guideline for the expected bottom of the base rate, which now stands at 3.6 percent after Tuesday’s fresh cut.
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