March 28, 2017 / 12:06 PM / 9 months ago

Hungary keeps base rate on hold at 0.9 pct as expected

BUDAPEST, March 28 (Reuters) - 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)

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