Size of Hungarian Central Bank Interest Rate Hike Increased Sharply

June 29, 2022

In Hungary, Magyar Nemzeti Bank’s base rate has been lifted by a greater-than-forecast 185 basis points to 7.75%. This was the 13th straight monthly tightening of monetary policy and surprised analysts because the 50-basis point rise done in May had been only half the size of the previous two increases. The pandemic low basie rate level had been a mere 0.60%, which began to be normalized when inflation moved above 5% in June 2021. Now CPI inflation is at 10.7, its highest point in 21 years. Currency depreciation has been a further concern of Hungary’s Monetary Council.

Copyright 2022, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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