At its latest monetary policy meeting on 25 September, the Central Bank voted to cut the base rate by 25 basis points to 6.50%. The decision was in line with market expectations and followed a similar move in August to rekindle faltering economic growth. The decision to further ease the reins followed on the deterioration of the Bank's growth outlook. In the same vein, the Bank stated that "the outlook for domestic economic growth has deteriorated recently and output is expected to grow only slowly in 2013". Regarding price developments, the Monetary Council expects that "the inflation target is likely to be met as the direct effects of cost shocks wear off". In addition, the Bank maintained a dovish tone and acknowledged that it "will consider a further reduction in interest rates if the improvement in financial market sentiment persists and medium-term upside risks to inflation remain moderate".
Hungary Monetary Policy
Central Bank cuts rates in line with expectations
September 25, 2012
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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.