* 5 cbankers backed 50 bps cut, 4 wanted bigger cut
* Cbank says gradual, even cuts can help stability
(Recasts with details from minutes, analyst comment.)
BUDAPEST, Nov 4 (Reuters) - Hungary's central bank decided in a tight vote in October to reduce its base rate by only 50 basis points, as four rate setters wanted a bigger cut, the minutes of the meeting showed on Wednesday.
The bank cut rates by 50 basis points to 7.0 percent
The October rate cut was the fourth reduction in a row at the monthly rate setting meetings, and the third 50 basis point step following July's one percentage point reduction.
"The overwhelming majority of members thought that with even steps the bank was more likely to create stability in a volatile environment, and it can reduce the risk of erratic reactions and overshooting in markets," the bank said in the minutes.
It said cutting rates was allowed by subdued demand in the recession-hit economy, which is expected to push inflation well below the bank's three percent target next year, and a fall in risks to financial stability also gave room to ease rates.
Some analysts and market players have said the bank may slow
the pace of cuts or even pause for months due to a weakening of
the forint
Analysts said after the minutes the rate cuts could continue.
"We originally saw a pause some time in this quarter but this now looks unlikely despite increased forint volatility," said Peter Attard Montalto, analyst at Nomura in London.
He said falls in retail sales and industrial output and rising unemployment would keep rate cuts on the cards through the first quarter of 2010, though the next meeting on Nov. 23 could be a close call between a cut or hold decision.
"It is not clear where the Monetary Council will stop but they have been cognisant of the risks of having to do a more dramatic about turn if we have a serious flare up in risk aversion and the currency sells off further," he said.
"The next meeting I think will be very close ... we can see a vote split between cut/no cut then," he added. (Reporting by Sandor Peto and Marton Dunai; editing by Chris Pizzey)