The Monetary Council of the central bank (MNB) has left is benchmark interest rate on hold at 1.35% at its rate-setting meetin on Tuesday, the first in 2016.
The decision was in line with analysts estimates. The central bank said a few months ago that the easing cycle came to an end and that it would be easing monetary conditions via unconventional means. Since its the last inflation report was released in December, oil prices declined by 20%, which makes it likely that the MNB will cut its 1.7% CPI forecast further in March, Equilor analyst Mónika Kiss told MTI.
The Central Bank's precaution (in holding rates) is justified as there has been selling pressure on emerging markets in recent weeks, said Dávid Németh Dávid, a senior analyst from K&H Bank.
