Hungary: Central Bank maintains monetary policy stance
June 20, 2011
At its monetary policy meeting on 20 June, the Central Bank decided to leave the benchmark rate unchanged at 6.00%, in a decision widely expected by the market. Monetary authorities last raised interest rates in February. The Central Bank remains confident that inflation will fall back to its 3.0% target in the mid term, as the slow recovery of the domestic sector along with loose labor market conditions are likely to prevent prices from spiraling up. The most recent inflation reading supports the Bank's view, with annual inflation dropping from 4.7% in April to 3.9% in May.