Hungarian monetary policy

Magyar Nemzeti Bank Winds Up Interest Rate Reduction Cycle

July 22, 2014

Hungary’s central bank declared an end to a 2-year easlng cycle after cutting the key rate by more than expected.  A greater-than-forecast reduction of 20 basis points in the bank interest rate to 2.1% put an end to a streak of cuts that included 12 reductions of 25 basis points, 6 of 20 bps, 2 […] More

Streak of Hungarian Central Bank Rate Cuts Extended With Another 10-Basis Point Reduction”

June 24, 2014

Monetary policy was eased for a 23rd straight month.  The key rate of 2.3% is down from 7.0% prior to August 2012.  The move was justified by low inflation, lessening risk factors, and monetary easing at the ECB, and the statement indicated that more easing is probable.  “Considering the outlook for inflation and taking into […] More

Magyar Nemzeti Bank Implements Another Interest Rate Cut

February 18, 2014

Hungary’s base rate has been reduced in increments of 25 basis points over the twelve months to and including July 2013, 20 bps in each of the last five months of 2013, and 15 bps in both January and now February of 2014.  The rate has declined altogether from 7.0% to 2.7%.  And yet, the […] More

Magyar Nemzeti Bank Eases Again and Signals likely Further Monetary Relief Next Year

December 17, 2013

Hungary’s two week deposit rate was at 7.0% prior to August 2012 when a string of reductions began, and it has continued to now with today’s announcement of a 20-basis point cut to 3.0%.  The statement concludes with the following summary of reasons for easing and forward guidance that such is likely to continue.  Each […] More

Another Cut Implemented in Hungary’s Two-Week Repo Rate

October 30, 2013

The policy interest rate of Magyar Nemzeti Bank had been reduced by 25 basis points for twelve straight months through July 2013 and now by a further 20 basis points each in the ensuing three months.  The rate now becomes 3.40%, down from 7.0% prior to August 2012.  A statement from officials defends this progressively […] More

A Modest Tapering of the Downtrend in Hungary’s Central Bank Interest Rate

August 27, 2013

The Monetary Council at Magyar Nemzeti Bank decided to cut the two-week deposit rate by 20 basis points to 3.8%.  Twelve consecutive monthly 25-basis point reductions had preceded this action. Incoming data on inflation and the real economy give scope to ease monetary conditions further. However, in light of the significant reduction in interest rates […] More

Twelfth Straight Interest Rate Cut in Hungary

July 23, 2013

Magyar Nemzeti Bank’s two-week repo rate was sliced to 4.0%.  This was the 12th monthly reduction in a row, a streak that started last August with a cut to 6.75% from 7.0%.  The severity of Hungary’s recession seems to have lessened, and inflation of 1.9% last month remained below the 3.0% target.  The dollar hasn’t […] More

Hungary Gets 11th Consecutive 25-Basis Point Central Bank Interest Rate Reduction

June 25, 2013

The Magyar Nemzeti Bank Council, which meets monthly, approved a a 25-basis point cut in the two-week deposit rate in each of the final five months of 2012 and in every month of the first half of 2013.  BUT, today’s action was accompanied by an amber light that cuts in the future may become less […] More

Tenth Straight Central Bank Rate Cut in Hungary

May 28, 2013

Magyar Nemzeti Bank’s two-week repo rate has been cut for the tenth straight month by 25 basis points and now stands at 4.5%, down from 7.0% prior to last August.  The pre-2009 peak, by comparison, was at 11.5%.  Today’s reduction was anticipated by analysts, and the statement released by Hungarian monetary authorities today strongly hints […] More

Eighth Straight Month to See a Central Bank Rate Cut in Hungary

March 26, 2013

Under newly appointed Governor Matolcesy, who has surrounded himself with like-minded monetary doves, the monetary council of Magyar Nemzeti Bank implemented another 25-basis point cut of its two-week deposit rate.  The new level of 5.0%, down from 7.0% prior to last August, is a record low, eclipsing the 5.25% level in April 2010.  The custom […] More