Interest rate: good bye!

Investors all over the world were paying close attention to the decisions made by central banks, therefore in global markets the risk-avoiding mood of February was replaced with optimism in March. As a result of this, the world’s most important stock market indexes were up. For instance US index S&P500 grew 6.78 percent in March. In mid-March the FED didn’t change the 0.25-0.50 percent base rate range.

Many experts say that in March, at the bank’s base rate cutting meeting, ECB president Mr Draghi finally decided to focus on increasing the lending activity, instead of weakening the euro to vitalise the economy. As for Hungary, the forint is about to weaken as rather unexpectedly the Central Bank of Hungary (MNB) cut the base rate by 15 points to 1.2 percent in March. What is more, MNB promised further base rate cuts. After this step some analysts forecast that the base rate cutting cycle will only end at 0.6 percent..