Hungary’s First Base Rate Cut in Four Years
June 23, 2020
The base rate of the Central Bank of Hungary, which had been at 0.90% since a 15-basis point reduction exactly four years ago, was reduced by another 15 basis points to 0.75%. CPI inflation this year is expected to hover between 3.0% and 3.5% and to average even less in 2021. The overnight deposit rate was left unchanged at -0.05%. A released statement explains
Due to strong disinflationary effects, the outlook for inflation has shifted downwards persistently, while Hungarian economic performance this year is likely to be more subdued than earlier expected.
Copyright 2020, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Magyar Nemzeti Bank
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