The Hungarian National Bank, in a surprise move, cut its overnight deposit rates to -0.05% on Tuesday, a 15bps rate cut while also lowering its overnight lending rates from 2.10% previously to 1.45% with the key base rate lowered to 1.20%, a 15bps cut. The broad rate cuts took the markets by surprise, where expectations were for no major policy changes to be made by the central bank. By cutting the deposit rates to -0.05%, the Hungarian National bank joins the ranks of the SNB, BoJ, ECB, Sweden's Riksbank and Denmark’s Danmarks Nationalbank. The markets are now expecting to see another 20bps rate cut over the coming months with yesterday's move being seen as a new easing cycle. The Hungarian Forint weakened significantly against both the Euro and the US Dollar on the surprise move.