BUDAPEST, Oct 20 (Reuters) - The National Bank of Hungary plans to keep its record-low base rate unchanged and maintain loose monetary conditions over its entire policy horizon due to benign price pressures and the remaining slack in the economy, it said on Tuesday.
“The current level of the base rate and maintaining loose monetary conditions for an extended period, over the entire forecast horizon, are consistent with the medium-term achievement of the inflation target and a corresponding degree of support to the economy,” it said in a post-meeting statement.
It said inflation was likely to approach its 3 percent policy target only at the end of its forecast horizon of six to eight quarters. Earlier it left the key rate on hold at a record-low 1.35 percent, in line with analyst expectations. (Reporting by Gergely Szakacs and Sandor Peto)