Hungary's Monetary Policy Outlook

The Hungarian central bank (MNB) has been cutting interest rates in small steps. This has been justified as there is actually deflation now in Hungary (despite higher growth) and there is certainly a risk of further deflation in the coming months.
 
Danske Bank notes as follows on Thursday....

We expect inflation to pick up somewhat - mostly on base effects. This limits the scope for further rate cuts but, on the other hand, continued forint appreciation could reopen the door to such action.