January 8, 2014 / 1:26 PM / 4 years ago

Hungary central bank voted 7-2 on Dec rate cut; 2 wanted smaller cut

BUDAPEST, Jan 8 (Reuters) - Seven of Hungary’s central bank policy makers voted last month to cut the base rate by another 20 basis points to a new low of 3 percent, while two members voted for a slowdown in the pace of easing, the meeting’s minutes showed on Wednesday.

Rate setters Gyula Pleschinger and Janos Cinkotai said the forint currency’s narrowing interest rate differential compared to regional peers warranted a slower, 10 basis-point reduction, the minutes showed.

The Monetary Council members said market jitters about the use of unconventional methods by global central banks warranted a cautious approach to monetary policy in the future.

“Considering perceptions of the risks associated with the economy as well as the improvement in the pace of economic growth, further easing of monetary policy may follow, but moving in smaller steps could be warranted in the future,” the Monetary Council said in a statement.

The bank has reduced its base rate from 7 percent in an unbroken string of cuts that began in August 2012. (Reporting by Marton Dunai and Sandor Peto)

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