At its latest monetary policy meeting on 24 January, the Central Bank raised the base rate by 25 basis points from 5.75% to 6.00%, in a decision broadly expected by the market. The rate hike is an attempt to control rising inflation and followed on similar hikes approved in November and December last year. The Bank acknowledged that inflation is expected to remain ?considerably above the Bank's 3% target in the coming quarters, due to significant cost-push shocks hitting the economy?, which include the recently approved windfall tax on the energy, telecommunications and retail sectors. Moreover, the Bank stated that there is a risk of inflation expectations rising as a result of a prolonged period of above-target inflation, which would cause the cost shocks to have ?second-round inflationary effects?. The Central Bank projects inflation to end the year at 3.8%, which is above its 3.0% inflation target (+/- 1.0% tolerance margin).
Hungary Monetary Policy
Central Bank raises interest rates for third consecutive month
January 24, 2011
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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.