BUDAPEST, June 20 (Reuters) - Hungary’s central bank decided to lower its cap on three-month deposits to 300 billion forints ($1.08 billion) by the end of September from 500 billion at the end of June, cutting it below analysts’ expectation for a 350 billion forint new cap.
The bank also reiterated that it would be ready to loosen monetary conditions further via unconventional tools if needed, the Monetary Council said in a statement on Tuesday. Earlier, the bank kept its base rate on hold at 0.9 percent.
“If inflation remains persistently below the target, the Council will stand ready to ease monetary conditions further using unconventional, targeted instruments,” it said.
The NBH also said that its inflation target “is expected to be achieved in a sustainable manner half a year later, from early 2019.” ($1 = 276.8400 forints) (Reporting by Krisztina Than and Marton Dunai)