Bank of Hungary

June 20, 2017

Hungary’s central bank left its key interest rate at 0.90% as expected and released the following statement of explanation.

Some degree of unused capacity has remained in the economy, but this is likely to be gradually absorbed as output grows dynamically. The inflation target is expected to be achieved in a sustainable manner half a year later, from early 2019.

The base rate reached 0.90% after three 15-basis point cuts in March, April and May of 2016. As at previous recent meetings, Executive Monetary Council members retained an easing bias in their forward guidance: “If inflation remains persistently below the target, the Council will stand ready to ease monetary conditions further using unconventional, targeted instruments.”

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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