At its latest monetary policy meeting on 21 February, the Central Bank left the benchmark rate unchanged at 6.00%, in a move widely expected by the market. The decision represented a halt to the monetary tightening cycle that saw three consecutive 25 basis point rate hikes since November, in an attempt to control rising inflation and anchor inflation expectations. The Bank maintained the same tone of the previous meeting, stating that inflation is ?expected to be considerably above the Bank's 3% target in the coming quarters, due to significant cost-push shocks hitting the economy?, which include the windfall tax on the energy, telecommunications and retail sectors imposed by the government this year. 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 halts tightening cycle
February 21, 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.