At its latest monetary policy meeting on 20 December, the Central Bank raised the base rate by another 25 basis points from 5.50% to 5.75%. The increase followed on an unexpected 25-basis-point hike in late November. The Bank reaffirmed its intention to prevent inflation expectations from rising as a result of ?significant cost-push shocks hitting the economy?, which have kept inflation persistently above the 3.0% target. In particular, monetary authorities stated inflation was being pushed up by higher prices for unprocessed food, which were filtering into the price of processed food. Moreover, the recently approved windfall tax on the energy, telecommunications and retail sectors is also likely to contribute to higher inflation. The Central Bank currently projects inflation to end the year at 4._%, which is above its 3.0% inflation target (+/- 1.0% tolerance margin).
Hungary Monetary Policy
Central Bank raises interest rates again
December 20, 2010
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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.