Interest Rate Hike in Hungary Largest So Far
July 12, 2022
The National Bank of Hungary’s interest rate has been raised by another two percentage points to 9.75%. There have been fourteen straight monthly increases, including a move of 185 basis points in June, and July’s increment was the largest of the bunch. Before tightening began in June 2021, the rate have been at 0.60%. Hungary is experiencing a vicious cycle of exchange rate depreciation and inflation acceleration. CPI inflation of 11.7% as of June was the most since 1998 and up from 5.3% in June 2021. Producer prices rose 32.3% over the year through May.
Copyright 2022, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Magyar Nemzeti Bank
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