Central Bank of Hungary
December 20, 2017
The central bank’s monetary council again kept the Hungarian base rate at 0.90%, its level since a 15-basis point reduction in May of last year. Inflation still hasn’t risen in a sustained manner to the central bank target, and officials do not expect that happening until the middle of 2019. The post-policy review statement asserts, “maintaining the base rate and the loose monetary conditions at both short and long ends for an extended period is necessary to achieve the inflation target in a sustainable manner.” The overnight deposit rate also was not changed and remains negative 0.15%. Two unconventional instruments are being introduced next month to help hold down long-term interest rates.
Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Magyar Nemzeti Bank
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