Magyar Nemzeti Bank

Magyar Nemzeti Bank

May 27, 2015

The Hungarian central bank base rate was cut in a third straight month on Tuesday, and like reductions in March and April, the size of the move was 15 basis points.  The new level becomes 1.65%, and a statement explaining the latest action retains an easing policy bias. if the assumptions underlying the Bank’s projections […] More

Hungarian Monetary Policy Eased

March 24, 2015

Magyar Nemzeti Bank’s Base Rate was cut by 15 basis points to 1.95%.  This was the first reduction in eight months, and officials left the door open for the possibility of even more reductions ahead despite a baseline scenario calling for robust growth, a gradually diminishing output gap, and consumer  price inflation convergence upon an […] More

Magyar Nemzeti Bank Still in Pause Bode But…

February 24, 2015

During the two years through last July, Hungary’s central bank policy rate was lowered by 490 basis points to the current level of 2.10%.  Seven months have now passed since the last policy modification.  Today’s released policy statement, however, puts markets on notice to the possibility of a further easing of the stance as soon […] More

Magyar Nemzeti Bank: No Policy Change Likely for Considerable Time Longer

December 16, 2014

In 24 consecutive increments from August 2012 through July 2014, Hungary’s central bank base rate was cut from 7.0% to 2.1%, topped off by a 20-basis point reduction in the final step.  There have now been five successive meetings with no rate change, and today’s statement, which asserts that Inflation in Hungary is likely to […] More

Magyar Nemzeti Bank Sends Same Message as Last month

November 25, 2014

A statement released after Hungary’s latest monetary policy meeting conveyed the view that the 2.1% key interest rate will be maintained for considerable time further. The negative output gap is expected to close gradually at the monetary policy horizon. Looking ahead, therefore, the disinflationary impact of the real economy is likely to diminish and, with […] More

Magyar Nemzeti Bank’s Key Interest Rate Lowered to 2.5%

April 29, 2014

Officials at Hungary’s central bank have cut their base rate at every monthly policy meeting since July 2013, but the incremental change has been reduced as slack in the economy has diminished.  A second successive 10-basis point cut decided at today’s meeting leaves the rate level at 2.5%.  There were previous easings of 15 basis […] More

Hungary’s Monetary Policy Easing Cycle Approaching Endpoint

March 25, 2014

The incremental cut of the two-week deposit rate, a drop of 10 basis points to 2.60%, was reduced from 15 bps after the January and February monthly meetings, 20 bps each in the final five months of 2013, and 25 bps per month over the year to July 2013.  The rate level prior to August […] More

Magyar Nemzeti Bank Reduces Incremental Monthly Interest Rate Cut

January 21, 2014

A cut in Hungary’s central bank base rate has been implemented for the 18th straight month.  The first dozen starting in August 2012 were by 25 basis points each from a starting level of 7.0%.  The next five reductions totaled 20 basis points apiece, cutting the level from 4.0% to 3.0% after the December 17th […] More

Another Cut Implemented in Hungary’s Two-Week Repo Rate

October 30, 2013

The policy interest rate of Magyar Nemzeti Bank had been reduced by 25 basis points for twelve straight months through July 2013 and now by a further 20 basis points each in the ensuing three months.  The rate now becomes 3.40%, down from 7.0% prior to August 2012.  A statement from officials defends this progressively […] More

A Modest Tapering of the Downtrend in Hungary’s Central Bank Interest Rate

August 27, 2013

The Monetary Council at Magyar Nemzeti Bank decided to cut the two-week deposit rate by 20 basis points to 3.8%.  Twelve consecutive monthly 25-basis point reductions had preceded this action. Incoming data on inflation and the real economy give scope to ease monetary conditions further. However, in light of the significant reduction in interest rates […] More

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