Hungarian Parliament building

Hungary Monetary Policy November 2019

Hungary: MNB holds rates steady in November meeting

On 19 November, the Monetary Council of the Hungarian National Bank (MNB) held the base rate steady at a historical low of 0.90%, and kept all other existing instruments unchanged. The decision was in line with market expectations. After its one-time hike of the overnight deposit rate in March, the MNB has since stayed put, while the world’s major central banks have loosened monetary policy amid slowing global growth dynamics.

The decision to hold rates largely reflected cooling European economic activity, which has kept a lid on inflationary pressures. Inflation rose to 2.9% in October from 2.8% in September, amid buoyant domestic activity, and is expected to rise further by the end of the year owing to the base effects of the drop in fuel costs last year. Nevertheless, the Bank noted that it sees inflation falling and stabilizing at its 3.0% target in 2020. Notably, external disinflationary effects and a moderation in wage growth are expected to put downward pressure on prices.

Looking ahead, the MNB maintained its accommodative stance from the last meeting as downside risks to inflation have strengthened further, reflecting the slowdown in European activity and loose global monetary policy. Nevertheless, the Bank will maintain a cautious approach and future developments affecting the price outlook will decide the need of any further measures.

The next meeting is scheduled for 15 December.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest