BUDAPEST, Feb 23 Reuters The National Bank of Hungary is likely to ramp up the pace of rate cuts to 100 basis points, slashing its base rate to 9 on Tuesday, after weakerthanexpected growth and inflation figures since its last meeting, a Reuters poll showed.

The NBH, which has faced strong government pressure to cut rates faster to help the economy, held off on larger cuts last month amid a rise in market risks after its midJanuary guidance that a sharp fall in inflation could help accelerate easing.

Hungary39;s headline inflation fell to an annual 3.8 in January from the European Union39;s highest levels of over 25 a year ago, while an economic recovery that started in the third quarter stalled in the last three months of 2023.

Deputy Governor Barnabas Virag told news website index.hu on Thursday that options for a 75bp and 100bp rate cut would both be on the table next week.

The median forecast of a Feb. 1923 Reuters survey projects a 100bp cut to 9, although seven out of 17 economists have pencilled in just a 75bp reduction.

We continue to expect the NBH to lower its key policy rate by 100 bps to 9 but also still see significant risks for the central bank to err on the side of caution and maintain a steady 75bp pace, Morgan Stanley economists said in a note.

We expect the base rate to reach 6.25 in June, when we think that the NBH is likely to take a pause for the rest of the year.

A 100bp cut next week would mean the NBH will have halved its main rate from 18…