Money in Hungary
Hungary - Money
MNB keeps rates on hold in January meeting
On 28 January, the Monetary Council of the Hungarian National Bank (MNB) kept the base rate on hold at a historical low of 0.90% and kept all other existing instruments unaltered, as had been largely expected. The MNB raised the overnight deposit rate in March 2019, but has since stayed put, while the world’s major central banks have lowered rates amid subdued global growth dynamics.
The Bank’s decision to keep rates unchanged largely reflected muted European economic activity, even as inflation jumped to 4.0% in December from 3.4% in November, due to the base effect of fuel prices. The Bank noted that it expects inflation to return to its tolerance band of 3.0% plus or minus 1.0 percentage point by the end of the first quarter, before stabilizing at its 3.0% target by 2021–2022 amid subdued external activity, which ought to contain inflationary pressures.
Looking ahead, the MNB maintained an accommodative stance in its communiqué, stating that risks to inflation are balanced due to softening recession fears in the Euro area. The Bank will, however, apply a cautious approach and any further measures will depend on future developments affecting the outlook for inflation.
The next meeting is scheduled for 25 February.
FocusEconomics Consensus Forecast panelists see the base rate ending 2020 at 0.99%. For 2021, the panel projects the base rate to end the year at 1.02%.
Hungary - Money Data
|Money (annual variation in %)||9.0||7.5||9.9||9.9||12.5|
5 years of economic forecasts for more than 30 economic indicators.
Hungary Money Chart
Source: National Bank of Hungary.
|Bond Yield||2.08||0.0 %||Dec 31|
|Exchange Rate||295.1||-0.68 %||Jan 01|
Get a sample report showing our regional, country and commodities data and analysis.
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
February 14, 2020
According to a preliminary reading released by the Hungarian Central Statistics Office (KSH) on 14 February, annual economic growth decelerated to 4.5% in Q4, down from Q3’s 5.0% expansion and marking the weakest reading since Q3 2017, but beating market expectations nonetheless.
February 13, 2020
According to a second estimate by the Statistical Institute, industrial production declined a working-day-adjusted 3.7% year-on-year in December, matching the first estimate and contrasting November’s revised 5.3% increase (previously reported: +5.7% year-on-year).
February 13, 2020
Consumer prices increased 0.9% over the previous month in January, after rising 0.3% month-on-month in December.
February 6, 2020
Industrial production fell a working-day-adjusted 3.7% year-on-year in December, contrasting November’s 5.7% rise, according to a first estimate by the Hungarian Central Statistical Office.
January 28, 2020
On 28 January, the Monetary Council of the Hungarian National Bank (MNB) kept the base rate on hold at a historical low of 0.90% and kept all other existing instruments unaltered, as had been largely expected.