Hungarian monetary policy
Magyar Nemzeti Bank
February 26, 2013
A seventh straight base rate reduction was approved in Hungary’s central bank in a split vote that put the outgoing governor in the minority camp. At 5.25%, the base rate is back to its Great Recession low. The first of this series of cuts was made in late August 2012, ending a span of seven […] More
Another Interest Rate Cut in Hungary
November 27, 2012
Officials at Magyar Nemzeti Bank sliced their Bank Rate by 25 basis points for a fourth consecutive month. The action, which leaves the rate level at 6.0%, had been widely anticipated, and officials left open the door to more rate reductions if economic trends develop as they expect. Expected developments in inflation and financial markets […] More
Hungarian Interest Rate Bias is Conditionally Skewed Downward
November 2, 2012
Officials on Tuesday at the Magyar Nemzeti Bank left Hungary’s key central bank rate at 6.25% but released a statement that flagged a possible cut in the future: “The Council will consider a further reduction in interest rates if data becoming available in the coming months confirm that the improvement in financial market sentiment persists […] More
Further Monetary Easing in Hungary
September 25, 2012
August’s first Hungarian central bank rate cut since April 2010 has been followed up with a second reduction of 25 basis points. The deposit rate and two-week MNB bill rate are both now at 6.5%. Analysts had been split between those expecting Magyar Nemzeti Bank officials not to change rates this month and others looking […] More
First Hungarian Central Bank Rate Cut since April 2010
August 28, 2012
Hungary’s base rate was cut by officials at the Magyar Nemzeti Bank to 6.75% from 7.0%, breaking a string of 5 rate hikes in November and December 2010 and January, November and December 2011. Officials had recently signaled a bias to ease contingent on a substantial and enduring reduction of Hungary’s risk premium and improved […] More
Hungarian Monetary Policy Pause Extended for Another Month
June 26, 2012
The Magyar Nemzeti Bank Base Rate was last changed in December, when a fifth increase was implemented. The rate level is now 7.0% versus above-target on-year CPI inflation of 5.3%. Inflation has been lifted by tax hikes made to reduce the budget deficit. Hungary also happens to be in recession. Real GDP plunged 5.1% at […] More
Monetary Policy in Hungary
May 29, 2012
Risk premia demanded by investors for holding Hungarian assets remain high. An escalation of concerns over the sustainability of sovereign debt in some euro-area countries may adversely affect premia on Hungarian financial assets. The Council therefore continues to consider it highly important that an agreement between the Government and the EU and IMF is reached […] More
7.0% Hungarian Base Rate Retained as Expected
April 24, 2012
The Monetary Council at Meyar Nemzeti Bank did not change its base rate for the fourth consecutive meeting and released a statement that enumerated many upside price risks such as past forint depreciation, elevated energy costs, higher excise duties, and a hike in value added taxation. On-year CPI inflation of 5.5% last month after 5.9% […] More
Hungary’s Monetary Policy Left Unchanged
March 27, 2012
By majority vote, the Monetary Council of Magyar Nemzeti Bank retained the base rate of 7.0%, its level since a 50-basis point increase in December. That hike culminated a 5-move, 175-bp tightening begun in November 2010. The freeze on policy has occurred despite a greater-than-anticipated acceleration of on-year CPI inflation in Hungary from 3.9% for […] More
