At its 29 May monetary policy meeting, the Central Bank left the base rate unchanged at 7.00%, in line with market expectations. The Bank last changed interest rates in December 2011, when it announced a 50 basis-point increase. According to the Central Bank, short-term prospects for the Hungarian economy are bleak, as GDP is expected to continue growing below its potential going forward. In addition, the Bank urged the government to reach an agreement with the EU and the IMF, which would reduce the risks associated with the economy. Regarding price developments, policymakers stated that inflation will continue on its upward path and is expected to rise significantly, driven by increases in VAT and a weaker forint, among other factors. Monetary authorities stated that the volatile risk environment and inflation running above target for an extended period continue to warrant a cautious policy stance. Moreover, the Bank stressed that it will make every effort to ensure that the measures announced by the government do not contribute to medium-term inflationary pressure and inflation returns to levels consistent with the Bank's medium-term inflation target.
Hungary Monetary Policy
Central Bank leaves rates unchanged in May
May 29, 2012
Looking for forecasts related to Monetary Policy in Hungary? Download a sample report now.
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.