At its latest monetary policy meeting on 29 November, the Monetary Policy Council (MPC) voted to raise interest rates by 25 basis points from 5.25% to 5.50%. The decision marked the first interest rate hike since October 2008 and surprised market analysts, which had the Central Bank maintaining the current monetary policy stance at least until the end of the year. The Bank stated that the move aims to prevent inflation expectations from rising as a result of persistently above-target inflation, which is expected to rise even further in the coming months due to ?significant cost-push shocks hitting the economy.? In particular, the Bank cited an expected increase in processed food prices brought about by higher unprocessed food prices, and possible price increases owing to the recently approved windfall tax on the energy, telecommunications and retail sectors.
Hungary Monetary Policy
Central Bank unexpectedly raises interest rates
November 29, 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.