Hungarian monetary policy

Hungary’s Accommodative Monetary Policy Settings Left Unchanged

May 22, 2018

The monetary council at Magyar Nemzeti Bank left its base rate at 0.90%, the level since a cut in May 2016 and its overnight deposit rate at negative 0.15%, its level since a reduction last September. Quantitative monetary policies were also not changed. In a released statement, officials observed that inflation is still below the […] More

Hungary’s Magyar Nemzeti Bank Latest Policy Decisions

November 22, 2016

The monthly Monetary Council meeting in November result in decisions to leave the central bank Base Rate and deposit rate flat at 0.90% and -0.05%, respectively, and to cut the overnight collateralized lending rate by 15 basis points to 0.90% and the one-week collateralized lending rate 10 bps to 0.90% as well. The Base Rate […] More

Magyar Nemzeti Bank Reaffirms Appropriateness of Hungary’s Monetary Policy Stance

September 22, 2015

Hungary’s Monetary Council retained a 1.35% Base Rate and released a statement that Concluded “inflation is likely to be below the inflation target this year and next, and is expected to rise to levels around 3 per cent only in the second half of 2017.” Attributed unfavorable global financial developments to “Greek government debt problems,concerns […] More

A Fifth and Likely Final Consecutive Monthly Monetary Easing in Hungary

July 21, 2015

The monetary council at Magyar Nemzeti Bank engineered another 15-basis point cut in its base rate, matching reductions in March, April, May and June.  The new 1.35% level is a record low and unlikely to be raised before late 2016.  At the same time, officials as many analysts suspected changed their forward guidance to signal […] More

Magyar Nemzeti Bank Does Another Rate Cut of 15 Basis Points to Record Low of 1.50%

June 23, 2015

In the two year through July 2014, Hungary’s central bank policy rate fell 490 basis points to 2.10%.  After an 8-month hiatus, easing resumed this past March.  The key rate including today’s cut has fallen by 15 basis points after the last four consecutive monthly meetings of Hungary’s Monetary Council.  A statement today signals that […] More

Another Hungarian Central Bank Base Rate Reduction

April 21, 2015

The Monetary Council at Magyar Nemzeti Bank sliced its base rate by 15 basis points to 1.95%.  A similar-sized cut at the March monthly meeting had broken a policy pause over the eight prior months.  For two years from August 2012 through July 2014, policy was loosened every month, taking the base rate from 7.0% […] More

Hungarian Monetary Policy Eased

March 24, 2015

Magyar Nemzeti Bank’s Base Rate was cut by 15 basis points to 1.95%.  This was the first reduction in eight months, and officials left the door open for the possibility of even more reductions ahead despite a baseline scenario calling for robust growth, a gradually diminishing output gap, and consumer  price inflation convergence upon an […] More

Magyar Nemzeti Bank

January 27, 2015

A two-year-long campaign of central bank interest rate reductions, which cumulatively cut the two-week deposit rate by 490 basis points to 2.1%, ended last July when a final 20-basis point reduction was engineered.  The baseline scenario since then has been to leave the rate at the current level for all of 2015, but today’s latest […] More

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 […] More

Magyar Nemzeti Bank

August 26, 2014

Monetary Council officials signaled last month that a two-year cycle of central bank reductions totaling 490 basis points from 7.0% prior to August 2012 to the current level of 2.10% had been completed.  So it was no surprise to investors to learn today of this month’s Council decision to leave the rate at 2.10%.  A […] More