BUDAPEST, Oct 10 (Reuters) - The National Bank of Hungary has room to cut its base rate further given benign inflation and continuing U.S. monetary stimulus, Csaba Kandracs, a new member of the Monetary Council was quoted as saying.
Hungary's central bank has cut rates by a combined 340 basis points over the past 14 months to a low of 3.6 percent.
Kandracs told daily Magyar Nemzet in an interview the 3-3.5 percent range flagged by Governor Gyorgy Matolcsy as a potential low point in the current easing cycle 'was not etched in stone.'
Analysts polled by Reuters expect inflation to fall to an annual 1.1 percent in September from 1.3 percent in August, a 39-year low, and the government said December inflation could be the lowest on record due to planned energy price cuts.
Kandracs was quoted as saying inflation could edge higher once the impact of regulated price cuts fades, but he did not see a risk that rate-setters would be forced into sudden moves.
He said uncertainties in global financial markets justified caution in policy, adding that he supported the approach taken by the central bank over the past two months to slow down the pace of easing to 20 basis point steps from 25 point ones.
(Reporting by Gergely Szakacs; Editing by John Stonestreet) Keywords: HUNGARY RATES/
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