At its latest monetary policy meeting on 26 July, the Central Bank left the benchmark rate unchanged at 6.00%, in a decision that was widely expected by the market. Monetary authorities last raised interest rates in January. The Central Bank anticipates a protracted recovery over the next two years, buttressed in the short run by strong external demand, while domestic demand is likely to gradually gather momentum. In the context of subdued domestic demand, the Bank believes ?inflation may fall back to 3% by the end of 2012 even without policy tightening, despite the cost shocks hitting the economy.? Moreover, considering the dependence on the external sector, the Bank highlighted that a ?deepening of the [sovereign debt] crisis could cause a slowdown in Euro area activity, which would negatively affect the outlook for Hungarian economic growth through lower external demand.?
Hungary Monetary Policy
Central Bank leaves rates unchanged
July 26, 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.