Magyar Nemzeti Bank
October 28, 2014
Hungary’s benchmark interest rate was reduced at every monthly meeting over the two years between August 2012 and July 2014, falling to 2.1% from 7.0%. It is now time to retain the low interest rate for an extended time frame through at least the end of 2015. That’s the reaffirmed message of today’s statement that concludes, “the disinflationary impact of the real economy is likely to diminish and, with current monetary conditions maintained, inflation is likely to move into line with the target over the medium term.” On-year inflation is now marginally negative, and the target is +2%. The output gap will gradually narrow.
Copyright 2014, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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