Hungary defied market expectations by maintaining its base interest rate at 6.75%, ending a streak of ten consecutive rate cuts.
However, this should not be surprising as inflation fell from over 25% to the current 4.10% YoY. It’s worth remembering that in September of the previous year, it was the highest in the region at 13.00%.
So, the Hungarians have probably taken a break in the cycle of rate cuts. Saying it’s the end of the cycle seems premature.
Every Central Bank in Central Europe has already lowered rates – European Central Bank did it as well. The Fed seems to be next in line.
The National Bank of Poland last cut interest rates in October. Since then it has consistently stuck with its stance.
However, the rhetoric may change with a decrease global inflation and subsequent rate cuts from other central banks.
By Szymon Gil, Investment Advisor at Michael / Ström Brokerage House.
Source: https://ceo.com.pl/wegrzy-zatrzymuja-cykl-obnizek-stop-procentowych-inflacja-spadla-do-41-r-r-57938
