At its 27 November monetary policy meeting, the Central Bank announced that it would cut the base rate by 20 basis points from 3.40% to 3.20%. The decision was widely expected by the markets. This marks the sixteenth consecutive meeting in which the Bank has decided to cut its base rate in order to stimulate the economy. The Central Bank said that the pace of economic growth is expected to pick-up next year. However, the Monetary Council expects, "external economic activity to strengthen gradually and weak domestic demand conditions to persist." Regarding price developments, the Council pointed out that inflationary pressures are expected to remain subdued, "over a sustained period." As a consequence, the Bank's decision to cut its base rate is in line with meeting the inflation target of 3.0% in the medium term. FocusEconomics Consensus Forecast panelists see the base rate at 4.49% by the end of this year. For next year, the panel expects the rate to end the year at 4.67%.
Hungary Monetary Policy
Central Bank reduces base rate by 20 basis points
November 26, 2013
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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.