At its latest meeting on 26 June, the Central Bank left the base rate unchanged at 7.00%. The vote was expected by most market analysts following on similar decision taken since December 2011, when the Bank announced a 50 basis-point increase. The Central Bank noted that growth prospects have deteriorated amid weakening demand both home and abroad. Austerity measures are likely to become a drag on domestic demand, while the slowdown in Hungary's major trading partners bodes ill for a rebound in exports. Regarding inflation, the Bank stated that although inflationary pressures from the real economy remain moderate, the increases in VAT and excise duties in early 2012 as well as the measures announced as part of the Structural Reform Programme continue to keep inflation above target. However, monetary authorities highlighted that the upward pressure of taxes on inflation is likely to be only temporary.
Hungary Monetary Policy
Central Bank maintains current stance in line with expectations
June 26, 2012
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Hungary Monetary Policy Chart
Note: Central Bank base rate in %.
Source: Hungarian Central Bank (MNB).
Hungary Economic News
October 25, 2016
The Central Bank of Hungary continues to employ unconventional measures to support growth and prop up inflation in the country.
October 24, 2016
The GKI economic sentiment indicator edged down from minus 3.6 points in September to minus 4.5 points in October.
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.