Hungarian Interest Rates Left Unchanged
June 21, 2016
Hungary’s Base Rate was lowered 490 basis points to 2.1% between August 2012 and July 2014, 65 basis points further to 1.35% between March and July of 2015, and by 15 basis points a month to 0.90% in March, April and May of this year. A statement released after this month’s decision to leave that key rate at 0.90% and the overnight lending and deposit rates steady at 1.15% and -0.05% observes a pick-up this quarter in Hungarian growth, which is projected around 3%. Unused capacity remains. Inflation is projected stay below the 3% target not just in 2016 but throughout 2017 as well. It will be a long time before interest rates are raised above the current historically low levels.
Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Magyar Nemzeti Bank