For the 23rd consecutive month, Hungary’s central bank has reduced its benchmark interest rate, dropping it from 2.4 to 2.3 percent. This appears to have surprised none of the economists polled before the bank’s meeting this week, and it would unsurprising if the policy of loosening continues. “Further cautious monetary easing may follow,” according to the country’s Monetary Council. The forint has dropped 2.8 percent during 2014 and reached 305.88 in Budapest on Tuesday afternoon. The bank made the decision after a finding that inflation had fallen below zero for the second month. Most forecast some growth for the Hungarian economy in 2014, but the situation remains tenuous.
