Hungary votes to leave central bank base rate unchanged at 0.9%

By Wendy Van Sickle

Columbus, Ohio, July 18 – The Monetary Council of Hungary’s Magyar Nemzeti Bank decided to hold the central bank base rate at 0.9% at its meeting on Tuesday.

Inflation fell to 1.9% in June, and economic growth is expected to speed up over the forecast period, according to a bank announcement.

Hungarian output growth continued in the second quarter of 2017 after the country’s economy grew by 4.2% in the first quarter of 2017 compared with the same period the previous year.

Employment was broadly unchanged during the spring of 2017 and unemployment at historically low levels, the bank noted.

The consumer price index is expected to remain constant over the remainder of the year.

The inflation target is expected to be achieved sustainably from early 2019.

The 0.9% overnight collateralized lending rate and the negative 0.05% overnight deposit rate also remain unchanged.

The central bank base rate has been 0.9% since May 2016.

© 2015 Prospect News.
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