Hungary's MNB to continue easing bias policy in 2016

While looking at the current economic condition in Hungary and free fall of Oil prices, further interest rate cut is expected, says MNB economist. As per the forecast, the Hungarian base rate is expected to cut from 1.35% to 1% in first half of 2016. 

To achieve the inflation target in current global scenario, it is very likely that actual downward revisions will be made in the Q1 Inflation report. This in turn sharply increases the likelihood of the policy rate itself being cut. Exchange rate will also be affected after such revisions in the monetary policy. MNB economists see EUR-HUF at 320.00 by March end.