In the Czech Republic the member of the board Lubomír Lízal said that that the CNB may need to relax monetary conditions further, via foreign exchange interventions. In reaction the koruna weakened to 25.58 EUR/CZK – the weakest value since February 6 - just before the CNB meeting, where the bank backed off from its previous warning about interventions against the koruna. In addition the Hungarian central bank cut its rate for the seventh time in a row by 25 bps to its all time low at 5.25%, last reached in April 2010. The rate cut was widely expected, but the following statement after the meeting was quite surprising. NBH has emphasized the slowdown in the inflation and has been more worried about weak domestic demand and its disinflationary impact. Although the voting pattern was tight it is widely expected that the easing cycle is not over yet. How far the NBH can go will depend not only on the economic situation, but also on the new governor, which should be named this Friday. If the successor of current governor is the top contender Gyorgy Matolcsy (big fan of unconventional policies), we are going to bet on further monetary easing.