* Second reduction in a month brought rates to 6.5 pct
* Further easing depends on market conditions, CPI outlook
* Rate-setting panel next meets on Oct. 30
BUDAPEST, Oct 10 (Reuters) - Hungary's central bank governor and his two deputies were outvoted by newer monetary policymakers for the second time running when the bank cut interest rates on Sept. 25, minutes of the meeting showed on Wednesday.
The quarter-point cut in the bank's base rate to 6.5 percent was backed by the four rate setters appointed last year by parliament, where Prime Minister Viktor Orban's conservative Fidesz party holds a two-thirds majority.
"Members agreed that a further reduction in interest rates could occur if financial market sentiment continued to improve and the medium-term upside risks to inflation remained moderate," the minutes of the meeting showed.
The phrasing again underscored the deep split between the four newer members and the three others, Governor Andras Simor and his deputies appointed in 2007 by a Socialist government, who have voiced concern over risks to inflation and the forint.
"Others argued in favour of keeping the base rate unchanged, referring to high underlying inflation and the structural problems of the real economy," the minutes said.
Analysts polled by Reuters expect annual price growth to have accelerated to 6.4 percent in September from 6 percent in August. The September data will be published on Thursday.
The minutes said some members took the view that easing monetary conditions would not provide a boost to the economy due to the existing structural problems.
The bank's Monetary Council will hold its next rate-setting meeting on Oct. 30.
Three of the four policymakers backing the September rate cut told Reuters after the meeting that a cautious rate-cutting cycle was now under way to help the recession-hit economy and that the bank was still targeting inflation.
The trio presented a united front in an interview with Reuters to dismiss criticism that the bank had abandoned inflation-targeting or that it had succumbed to political pressure by twice cutting rates despite rising inflation.
The three - Andrea Bartfai-Mager, Ferenc Gerhardt and Gyorgy Kocziszky - maintained that inflation pressures were moderate and that the bank could reach its 3 percent inflation target in the first half of 2014.
(Reporting by Gergely Szakacs; Editing by Hugh Lawson)
Keywords: HUNGARY RATES/