Hungary's central bank slashed its key interest rate more-than-expected on Tuesday, after prices declined for a third straight month in June.
The Monetary Council of the Magyar Nemzeti Bank reduced the central bank base rate by 20 basis points to a record low 2.10 percent. Economists had forecast a 10 basis points cut. The bank cut the rate for the twenty-fourth month in a row.
Prices fell for the third consecutive month in June. In June, prices dropped 0.3 percent annually, faster than May's 0.1 percent decline. In April, prices decreased for the first time since 1968.
"We think that there's a good chance that this marks the end of the easing cycle, but the bigger picture is that monetary policy is set to remain extremely loose for a long time," Capital Economics Emerging Markets Economist William Jackson said.
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