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Hungarian central bank seen stepping up rate cut pace to 100 bps: Reuters poll

BUDAPEST (Reuters) - - The National Bank of Hungary is likely to ramp up the pace of rate cuts to 100 basis points, slashing its base rate to 9% on Tuesday, after weaker-than-expected growth and inflation figures since its last meeting, a Reuters poll showed. The NBH, which has faced strong government pressure to cut rates faster to help the economy, held off on larger cuts last month amid a rise in market risks after its mid-January guidance that a sharp fall in inflation could help accelerate easing. Hungary's headline inflation fell to an annual 3.8% in January from the European Union's highest levels of over 25% a year ago, while an economic recovery that started in the third quarter stalled in the last three months of 2023.

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