The Monetary Council of the National Bank (MNB) reduced the base rate by 50bp to 7.25% at its monthly rate-setting meeting on May 21, in line with forecasts and level with the rate cut a month earlier. The MNB began its easing cycle a year ago from 18%, but it is nearing its end. Inflation is expected to pick up in the coming months after a steep disinflationary period from 25.7% in January 2023 to 3.7% in April 2023, and geopolitical tensions, along with the volatility of international investor sentiment, also justify a cautious monetary policy. The interest rate corridor remained unchanged a…