Hungary's easing cycle at an end, policy to stay extremely loose

The National Bank of Hungary cut its benchmark interest rate by more than both we and the consensus expected earlier today, but followed this up with comments that its two-year long easing cycle is now at an end. Looking ahead, the benign inflation outlook means that monetary policy is likely to remain extremely supportive for a prolonged period. We expect the benchmark rate to remain at its current historic low well into next year.