The National Bank of Hungary cuts key rate by 15 bp

Budapest, March 22 (MTI) – The National Bank of Hungary lowered the central bank’s key rate by 15 basis points to 1.20 percent at a policy meeting on Tuesday, making a cut for the first time since last summer.

The rate-setting Monetary Council had kept the base rate on hold since signalling an end to an easing cycle at a policy meeting in July 2015.

However, after the rate-setters’ policy meeting in February, they said monetary conditions could be eased further in view of the central bank’s fresh quarterly Inflation Report. The Council also noted that members “closely examined” foreign monetary policy developments, “particularly the measures of the European Central Bank” at the meeting.

The ECB cut its main interest rate by 5 basis points to 0 percent earlier in March.

“Interest rate cuts will continue as long as monetary conditions become consistent with the sustainable achievement of the inflation target,” the Council said in a statement after the meeting.