BUDAPEST, March 28 Hungary's central bank kept
its base rate on hold at 0.9 percent on Tuesday as expected,
while investors focused on a possible further reduction in the
size of its main three-month deposit facility in a statement due
at 1300 GMT.
With the bank ruling out further cuts in its main policy
rate, a cut in the deposit facility has emerged as its
tool to stimulate the economy and curb market interest rates in
a drive to lower borrowing costs for businesses and households.
All 20 analysts in a March 20-22 Reuters poll said the
bank's base rate would stay unchanged. According to the median
forecasts in the survey, the base rate will not change this year
but could rise to 1.2 percent by end-2018.
(Reporting by Krisztina Than and Gergely Szakacs)