Economy
Hungary central bank will not stop cutting rates - c.banker
"Fortunately the communication of the Monetary Council has turned out to have been pretty clear and markets are reading it correctly," Kandrács said in an interview.
"For now I see no such influence that would necessitate a review of this communication, which makes it easy to interpret in which direction the Council is going," he added.
The Monetary Council cut the key policy rate by 15 basis points to a new low of 1.8% last month and flagged the prospect of further easing to meet its inflation target.
"Cautious easing of the policy rate may continue as long as it supports the achievement of the medium-term inflation target," it said.
The next policy meeting is scheduled for 26 May. Analysts polled by Portfolio expect rates to bottom out at 1.5% as soon as June this year. Analysts polled by Reuters expect the base rate to drop to 1.5% by the end of 2015 before a rebound to 2.25% by the end of next year.
"For now I see no such influence that would necessitate a review of this communication, which makes it easy to interpret in which direction the Council is going," he added.
The Monetary Council cut the key policy rate by 15 basis points to a new low of 1.8% last month and flagged the prospect of further easing to meet its inflation target.
"Cautious easing of the policy rate may continue as long as it supports the achievement of the medium-term inflation target," it said.
The next policy meeting is scheduled for 26 May. Analysts polled by Portfolio expect rates to bottom out at 1.5% as soon as June this year. Analysts polled by Reuters expect the base rate to drop to 1.5% by the end of 2015 before a rebound to 2.25% by the end of next year.
