HU: Dovish step from the central bank

At its todays rate-setting meeting, the Monetary Council reduced the policy rate by 25 basis points, to 6.75%. Both the O/N deposit and O/N lending rates were also cut by 25 bp to 5.75% and 7.75%, respectively. After last weeks communication the decision was not a surprise, however it is clearly a dovish step contrary to hawkish words in June.

The statement of the monetary council will be released at 3 p.m. Besides, Vice Governor Virag will hold a press conference at 3 p.m., as well on the background of the rate decision. We will issue another Instant Comment later, on the details.