Interest Rate in Hungary
Hungary - Interest Rate
MNB hikes rates again in July
At its 26 July meeting, the Monetary Council of the Hungarian National Bank (MNB) raised its base rate to 10.75% from 9.75%, marking the 15th consecutive increase. Moreover, the Bank increased the overnight deposit rate, the overnight collateralized lending rate and the one-week collateralized lending rate by 100 basis points each, to 10.25%, 13.25% and 13.25%, respectively.
The Bank continued to tighten its stance due to soaring inflation and a further intensification of upside inflation risks amid the ongoing war in Ukraine. Headline inflation accelerated to 11.7% in June from 10.7% in May, moving further above the Bank’s target range of 3.0% plus or minus one percentage point. Moreover, core inflation rose to 13.8% in the same month, from 12.2% in May. The Bank expects inflation to increase further in the coming months, peaking in autumn and then declining gradually. Inflation is seen reaching the 3.0% target only in H1 2024.
Looking ahead, the Bank sees mounting upside risks to inflation stemming from persistently high commodity and energy prices, supply disruptions and second-round effects. These dynamics are being aggravated by the Russia-Ukraine war. The Bank, therefore, reiterated that it will continue to raise rates to anchor inflation expectations and mitigate second-round inflation risks, reiterating that “maintaining tighter monetary conditions for a longer period is warranted”.
The next monetary policy meeting is scheduled for 30 August.
FocusEconomics Consensus Forecast panelists are still assessing the latest developments and new forecasts will be released on 2 August.
Hungary - Interest Rate Data
|Policy Interest Rate (%)||1.35||0.90||0.90||0.90||0.90|
5 years of economic forecasts for more than 30 economic indicators.
Hungary Interest Rate Chart
Source: National Bank of Hungary.
|Bond Yield||2.08||0.0 %||Dec 31|
|Exchange Rate||295.1||-0.68 %||Jan 01|
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August 12, 2022
According to a second estimate by the Statistical Institute, industrial output expanded 1.5% year on year in June (May: +3.4% yoy).
August 11, 2022
Consumer prices increased 2.33% from the previous month in July, accelerating from the 1.47% rise seen in June.
July 29, 2022
According to a second estimate by the Statistical Institute, industrial output expanded 3.4% year on year in May (April: +4.7% yoy).
July 28, 2022
The GKI economic sentiment index, a composite indicator, fell to minus 9.4 in July from minus 7.5 in June.
July 28, 2022
At its 26 July meeting, the Monetary Council of the Hungarian National Bank (MNB) raised its base rate to 10.75% from 9.75%, marking the 15th consecutive increase.