Hungarian Monetary Policy Remains Paused

June 21, 2010

The Magyar Nemzeti Bank did not cut its 5.25% key interest rate for a second straight month, citing perceived risks associated with Hungarian fiscal assets and inflation.  A statement from officials projects export-led economic growth with domestic demand lagging.  Inflation is presently above target but already had receded to 5.1% in May from 5.9% in […] More

Interest Rate Decisions in Hungary and Russia

May 31, 2010

Hungary’s key interest rate was not cut further.  A streak of ten consecutive monthly policy rate reductions by the Magyar Nemzeti Bank was interrupted in May as analysts thought would happen.  The 5.25% rate level remains 425 basis points lower than such was in mid-2009 and down 625 basis points since a peak in late […] More

Another 25-Basis Point Hungarian Central Bank Rate Reduction

April 26, 2010

The Magyar Nemzeti Bank implemented the 14th cut of its base rate since November 2008 and tenth since July 2009.  The decrease of 25 basis points to 5.25%matched expectations and was the fifth consecutive monthly drop of that size.  Hungarian CPI inflation has been rising with an on-year increase in March of 5.9% after 5.7% […] More

Another 25-Basis Point Hungarian Central Bank Rate Cut

March 29, 2010

The Mayar Nemzeti Bank implemented its fourth straight 25-bp interest rate cut to 5.5% and reiterated the assertion that further cuts will be possible only if financial market risk perceptions allow such.  Weak growth and the forecast of sub-target inflation next year are not sufficient conditions.  Currency behavior is a litmus test for risk perceptions, […] More

Hungary Gets a Rate Cut for the Eighth Month in a Row

February 22, 2010

Magyar Nemzeti Bank reduced its two-week bill rate by 25 basis points to a 20-year low of 5.75%, the same incremental cut as in December and January.  The previous four months had seen the rate decline by 50 basis points apiece, and an initial easing last July was 100 basis points in size.  A weak […] More

Another 25-Basis Point Cut in Hungary’s Central Bank Rate

January 25, 2010

The Magyar Nemzeti Bank two-week deposit rate was cut from 6.25% to a 44-month low of 6.0%, bringing the cumulative decline since mid-2009 to 350 basis points.  The key rate was also reduced by 25 bps last month after cuts of 50 bps each in August, September, October and November, and an initial reduction of […] More