Magyar Nemzeti Bank

No Change Made to Hungary’s Central Bank Base Rate

July 26, 2016

Officials at Magyar Nemzeti Bank have used the opportunity of persistent, extensive unused capacity and a lack of pricing pressure to loosen monetary progressively.  Their main interest rate was reduced 490 basis points to 2.1% during the two years ending July 2014.  Five additional 15-basis point cuts were done last year at successive meetings from March through […] More

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 […] More

Magyar Nemzeti Bank

May 24, 2016

Hungary’s Base Rate was cut to 0.90% from 1.05% in a third consecutive reduction of 15 basis points.  The overnight lending rate also got sliced by 15 basis points, while the overnight deposit rate was retained at -0.05%.  More important, a statement from Hungary’s Monetary Council signaled an end to the latest string of base […] More

Another 15-Basis Point Central Bank Rate Cut in Hungary

April 26, 2016

Magyar Nemzeti Bank cut its base rate to 1.05% from 1.20%.  The rate had been frozen at 1.35% from July 2015 until last month’s meeting when a similar-sized rate cut was implemented in conjunction with a significant downwardly revised inflation projection.  A statement released today concludes that “the sustainable achievement of the inflation target points […] More

Magyar Nemzeti Bank Cuts Hungary’s Central Bank Interest Rates

March 23, 2016

The Bank Rate had been cut by 490 basis points between August 2012 and July 2014 to 2.10% and by an additional 75 basis points in 15-bp increments from March 2015 through July 2015 but paused at 1.35% thereafter until now.  Easing was resumed at this month’s meeting of the Monetary Council, and the amount […] More

Hungarian National Bank

February 23, 2016

The central bank monetary council agreed again to leave Hungary’s base rate at 1.35% but left the door open to possible further easing of an already accommodative stance.  In any case, there will not be any tightening in the forecast policy horizon since expected inflation is at an historic low according to a released statement.  […] More

Magyar Nemzeti Bank

January 26, 2016

Hungary’s base rate was left at 1.35% as expected after the first monetary council meeting of 2016.  This level represents a record low.  From March through July of last year, it was cut 15 basis points each monthly meeting and dropped to 1.35% from 2.10% as a result.  Today’s statement talks of slower growth, a […] More

Magyar Nemzeti Bank

December 15, 2015

The Hungarian base rate was left at 1.35%, its level since the last of five 15-basis point cuts engineered at consecutive meetings between March and July of this year. A released statement observes continuing spare capacity, inflation that remains substantially below the 3% target, historically low expected inflation and weaker-than-desired growth, and officials predict that […] More

Hungarian Monetary Policy Left Unchanged

November 17, 2015

Hungary’s central bank interest rate was kept at 1.35%.  A released statement notes continuing spare capacity and low inflation.  The output gap is not expected to close completely until the end of the forecast period, and stable inflation expectations in line with the target is seen.  “If the assumptions underlying the Bank’s projections hold, the […] More

A Fifth and Likely Final Consecutive Monthly Monetary Easing in Hungary

July 21, 2015

The monetary council at Magyar Nemzeti Bank engineered another 15-basis point cut in its base rate, matching reductions in March, April, May and June.  The new 1.35% level is a record low and unlikely to be raised before late 2016.  At the same time, officials as many analysts suspected changed their forward guidance to signal […] More