Hungarian Monetary Policy Stance Left Unchange

May 28, 2019

Magyar Nemzeti Bank’s base rate has been at 0.90% since a 15 basis point reduction three years ago. The overnight deposit rate was raised 10 basis points two months ago to minus 0.05% in a move that reversed a cut of 10 bps in September 2017. Monetary officials at the central bank remain satisfied that inflation continues to be contained. A released statement asserts that “persistently buoyant domestic demand is boosting, and weakening external activity is restraining the pace of price increase.” Month-to-month volatility in inflation has been caused by transitive factors. Core inflation excluding indirect taxation dipped 0.1 percentage point in April to 3.4%.

Copyright 2019, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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