At its 21 January monetary policy meeting, the Central Bank decided to cut the base rate by 15 basis points from 3.00% to 2.85%. The decision undershot market expectations of a 20 basis points cut in the base rate. As a result, the interest rate now sits at the lowest level on record. This marks the eighteenth consecutive meeting in which the Bank announced that it would cut the base rate in order to stimulate the economy. According to the Bank, output remains below potential, however, the economy is expected to continue to grow both this year and the next. In addition, the Bank expects both domestic demand and exports to grow in the coming years. Regarding price developments, the Monetary Council said that, "the Bank's measures of underlying inflation capturing the medium-term outlook indicate moderate inflationary pressures in the economy." FocusEconomics Consensus Forecast panelists see the base rate at 3.98% by the end of 2014. For 2015, the panel expects the base rate to be 3.98%.
Hungary Monetary Policy
Central Bank cuts base rate further
January 21, 2014
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Hungary Monetary Policy Chart
Note: Central Bank base rate in %.
Source: Hungarian Central Bank (MNB).
Hungary Economic News
October 11, 2016
In September, consumer prices rose 0.2% from the previous month, contrasting August’s 0.4% decrease.
October 7, 2016
According to preliminary data released by the Statistical Institute (KSH) on 7 October, industrial output in August rose a working-day adjusted 3.5% from the same month last year, rebounding from July’s 0.1% decrease and marking a four-month high. On a monthly basis, industrial production increased a seasonally- and working-day adjusted 1.6% in August, which followed July’s 0.3% decrease.
September 26, 2016
The GKI economic sentiment indicator advanced slightly from August’s minus 3.9 points, which was the lowest reading in over two years, to the still-low level of minus 3.6 points in September.
Hungary: Central Bank leaves base rate at 0.90%, continues easing monetary conditions by capping main deposit facility
September 20, 2016
The Central Bank of Hungary (NBH) held all rates constant at its 20 September monetary policy meeting, but continued easing monetary policy conditions by using unconventional monetary policy instruments.
September 9, 2016
In August, consumer prices fell 0.4% over the previous month, coming in below July’s softer 0.2% decrease.