Hungary Seen Cutting Rates Next Week at Slower Pace

 
   By Margit Feher 
 

        Hungary is widely expected to continue its easing cycle next week as its currency has weathered the financial market storm caused by the Greek crisis relatively well.
        "Things have turned slightly worse but remain at very supportive levels. Put simply, we think the Hungarian central bank cares that Hungary is not standing out in risk-terms versus peers, especially as it moves to cut [interest rates] below [those of regional peer] Poland," said economist Peter Attard Montalto from Nomura.
        Poland's benchmark monetary policy rate is at 1.5%, the same as Hungary's key rate at present.
        Tuesday, Hungary will probably cut its main rate to a fresh record low, albeit at a slower pace than in each of the previous three months, 14 of the 16 economists polled said.
        They cited the rate-setters' indications last month for "slight cutting" to come. Most of them forecast a 0.10 percentage-point easing this time around, compared with the 0.15 percentage point moves in each of the previous three months.
        As for the bottom of the current Hungarian easing cycle, most forecasts predict either 1.2% or 1.3%.
        Patryk Wasilewski in Warsaw contributed to this article.
        Write to Margit Feher at margit.feher@wsj.com
        (END) Dow Jones Newswires

        July 17, 2015 05:47 ET (09:47 GMT)

#FX
#Forex
#SaleForex
#Hungary
#CuttingRates
#NextWeek
#SlowerPace