The Hungarian central bank’s (MNB’s) decision to cut the top of its interest rate corridor, by 250bp, today is a first step in what is likely to be a shift in the monetary policy framework that will be unveiled in the post meeting statement, due at 14.00 BST. But the short point is that the statement will almost certainly announce that the quick deposit rate (the current key policy rate) will be cut by 100bp, to 13.00%, and we think that the easing cycle will continue at a similar pace into the first quarter of next year.
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