BUDAPEST, June 24 (Reuters) - Inflationary pressures in the Hungarian economy are likely to remain moderate in a lasting way and the macroeconomic outlook points towards “persistently loose monetary conditions,” the central bank said on Tuesday, after it cut rates to a new low.
The bank has cut its base interest rate by 10 basis points to 2.3 percent.
“Considering the outlook for inflation and taking into account perceptions of the risks associated with the economy and the pick-up in economic growth, further cautious easing of monetary policy may follow,” the bank’s rate-setting Monetary Council said in a statement.
However, it added that the base rate “has significantly approached a level which ensures the medium-term achievement of price stability and a corresponding degree of support for the economy.”
“Over the coming period, changes in the domestic and international environment might influence this picture,” it added. (Reporting by Krisztina Than and Gergely Szakacs)