At its latest meeting on 24 July, the Central Bank left the base rate unchanged at 7.00%. The vote was expected by most market analysts following on similar decisions taken since December 2011. The Bank stated that it expects the economy to contract 0.8% this year. Nonetheless, despite subdued domestic demand, monetary authorities anticipate inflation to "remain significantly above the medium-term target [of 3.0%] into 2013 as a result of a series of increases in indirect taxes affecting consumer prices". The Bank commented on the positive developments observed recently in Hungarian financial markets, but warned that that the situation remains fragile. The Bank welcomed the resumption of negotiations between the government and the EU and IMF, stressing that an agreement "could lead to a sustained improvement in risk perceptions". In the same vein, the Bank pointed out that it "will consider a reduction in interest rates if Hungary's risk premium falls persistently and substantially and the outlook for inflation improves".
Hungary Monetary Policy
Central Bank leaves rates unchanged but opens the door for future rate cut
July 24, 2012
Looking for forecasts related to Monetary Policy in Hungary? Download a sample report now.
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.