November 20th, 2009

National Bank expected to ease rates on Monday

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The National Bank (MNB) will lower the base rate from 7.0% to 6.5% on Monday and to 6.0% in December, according to the consensus of analysts surveyed by Reuters, Napi Gazdaság reports.

Of the 23 analysts polled, only one said the MNB will cut the rate to 6.25% next week.
Monetary easing will come to an end in the first half of 2010 at 5.5%, according to the survey.
The analysts project a budget deficit below 4% of GDP this year, but raised their forecast for next year slightly to 4.3%, compared with the government’s 3.8% target.

They expect inflation to slow down to 3.7% in 2010, and the annual consumer price index for December 2010 to come down to 2.3%, below both government and MNB forecasts.

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