Magyar Nemzeti Bank

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

Magyar Nemzeti Bank Does Another Rate Cut of 15 Basis Points to Record Low of 1.50%

June 23, 2015

In the two year through July 2014, Hungary’s central bank policy rate fell 490 basis points to 2.10%.  After an 8-month hiatus, easing resumed this past March.  The key rate including today’s cut has fallen by 15 basis points after the last four consecutive monthly meetings of Hungary’s Monetary Council.  A statement today signals that […] More

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