Magyar Nemzeti Bank

Magyar Nemzeti Bank Tightens Hungarian Monetary Policy Stance Further

February 22, 2022

Hungary’s central bank policy interest rate has been raised by another half percentage point to 3.4%, matching the increase done in January. From a base of 0.60% through May 2021, the rate was raised in each of the final seven months of last year by a combined 180 basis points. CPI inflation accelerated from 2.2% […] More

Dollar Marking Time as Two-Day FOMC Meeting Commences

December 14, 2021

The dollar remained unchanged on balance overnight against the euro, Swiss franc, kiwi, yuan and versus its weighted DXY index. The greenback ticked 0.1% higher relative to the yen and loonie and 0.1% lower vis-a-vis sterling. A two-day meeting of the FOMC began in which policymakers are expected to accelerate previously signaled plans to taper […] More

A Sixth Hungarian Central Bank Rate Hike

November 16, 2021

Magyar Nemzeti Bank’s base rate was raised 30 basis points today to 2.1%. The increase and its size matched expectations. This cycle of gradual increases began in June, hasn’t missed a month, and thus far totals 150 basis points. More tightening is to be expected, as officials served notice that projected inflation in 2022 will […] More

Flat Dollar Ahead of Emergency G7 Leaders Meeting

August 24, 2021

Dollar rates against the euro, yen, Swiss franc and DXY weighted index are unchanged from Monday closing levels. The U.S. currency has not done as well against commodity-sensitive currencies, falling by 0.7% versus the kiwi, 0.5% against the Australian dollar, 0.2% vis-a-vis the loonie, and 0.1% versus the Chinese yuan and Mexican peso. One currency […] More

Interest Rate Hikes in Hungary and Kyrgyzstan

July 27, 2021

A 30-basis point increase in the National Bank of Hungary’s base rate to 1.2% was larger than what analysts were predicting and represents the second such hike in a month. Magyar Nemzeti Bank’s overnight deposit rate was increased from -0.05% to +0.25%. The base rate level is now at its highest level since early 2016. […] More

China Remains in the Spotlight

July 27, 2021

The Shanghai Composite equity index fell 2.3% on Monday and another 2.5% on Tuesday reflecting the deteriorating relationship between the Chinese and U.S. governments and investor fears over intensifying Sino regulations constricting the business activities of foreign companies. Hong Kong’s Hang Seng index has taken an even bigger blow, dropping 1.5% last Friday, 4.1% yesterday […] More

Watching Stocks, Long-Term Interest Rates, and Events on Capitol Hill

February 23, 2021

Futures trading on the Nasdaq, which fell over 300 points yesterday, are down an additional 1.4% this Tuesday. The half-percentage point rise in the U.S. ten-year Treasury yield since mid-December reflects speculation that inflation and growth may be stronger than assumed later this year but not so much so as to provoke the Fed into […] More

Hungary’s Central Bank Rate Left at 0.60%, But Officials Warn of Chance that Covid Delivers a Second Blow

August 25, 2020

There’s little remarkable in today’s Hungarian Monetary Council decision to leave its central bank base rate unchanged at 0.90%. To counter economic damage from the Covid-19 pandemic, officials engineered rate cuts of 15 basis points each at their policy reviews in June and July. Also CPI inflation rose in Hungary to 3.8% last month a […] More

Hungary’s Central Bank Interest Rate Cut 15 Basis Points to 0.60%

July 21, 2020

Officials on the Monetary Council of Magyar Nemzeti Bank reduced the central bank base rate from 0.75% to 0.60%. The rate had been also cut by 15 basis points at the June policy review after having held at 0.90% since a reduction in May 2016. In a released statement, officials note that Hungary’s economy was […] More

Hungary’s First Base Rate Cut in Four Years

June 23, 2020

The base rate of the Central Bank of Hungary, which had been at 0.90% since a 15-basis point reduction exactly four years ago, was reduced by another 15 basis points to 0.75%. CPI inflation this year is expected to hover between 3.0% and 3.5% and to average even less in 2021. The overnight deposit rate […] More

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