Hungary National Bank Leaves Base Rate On Hold

  • 23 Oct 2019 11:40 AM
  • Hungary Matters
Hungary National Bank Leaves Base Rate On Hold
Rate-setters of the National Bank of Hungary left base rate unchanged at 0.90% at a regular meeting.

The Council has left the rates unchanged for more than half a year and have tweaked monetary policy on a quarterly basis, coinciding with the publication of the central bank’s Inflation Report.

In a statement released after the policy meeting, the Council said they continue to “rely mainly” on incoming data and the projections in the Inflation Report.

The Council also reiterated that downside inflation risks had “strengthened further” because of the economic slowdown in Europe, and that the external monetary policy environment had become looser as a result of decisions by leading central banks.

The Council attributed the drop in headline inflation in September to a decline in prices for unprocessed food and fuel, but said higher core inflation measures were due to rising telecommunications prices.

The Council noted that a “significant part” of the sale of the popular Plus government bonds for retail investors were in the capital while purchases were lower in the rest of the country.

MTI Photo: Manek Attila

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