Magyar Nemzeti Bank Keeps Hungary’s Base Rate at 0.90%
February 28, 2017
Between August 2012 and May 2016, Hungary’s central bankers reduced their Base Rate from 7.0% to 0.90%. The last eight changes, five in 2015 and three last year, were each 15 basis points in size. CPI inflation remains below the 3% target and is not expected to reach that level until sometime in the first half of next year, according to today’s released statement. Inflation expectations and 3-month BUBOR are historically low. The forint is stronger against the euro than when officials last reviewed policy on January 24, and GDP is expected to trend upward at around a 3% pace this year and next. An uncertain global financial environment creates extra challenges. One way that officials are keeping an accommodative bias is through the imposition of limits on 3-month deposits, which are adjusted quarterly.
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Tags: Magyar Nemzeti Bank