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Hungary's Central Bank Rate Cuts
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Overview
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Hungary's central bank has made significant rate cuts, but the government calls for further reductions. The headline inflation has eased to 5.5%, but concerns persist regarding the bank's caution in rate cuts. Real interest rates are deemed too high, especially considering the anticipated inflation level at the end of 2024.
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How do central banks' decisions on interest rates affect borrowing costs and investment in a country?
How might the government's call for further rate cuts impact Hungary's economy and inflation?
What factors could influence the central bank's decision on interest rates and inflation control?
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