Executive Summary Although the new cabinet is not expected to be up and running before early June, post-election policy shifts are discernable, in the new Central Bank and State Debt Management Agency measures to reshape government financing, and the update of Hungary’s convergence program. Herein, we discuss the likely implications of these changes, and briefly analyze 2014 economic performance to date. The MNB is keeping the market on its toes, with steady rate cuts and changes to its policy framework. The recent 10 bp cut in the base rate, to 2.5% (offered on the two-week sterilization f...
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