Hungary keeps rate steady at 0.9% as inflation eases toward target

By Susanna Moon

Chicago, June 20 – 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 2.1% in May, with the rate moving toward the target rate, and growth is expected to speed up over the forecast period, according to a bank announcement.

The country’s economy grew by 4.2% in the first quarter of 2017 compared with the same period the previous year.

Rising employment and wage hikes were offset by the cut in employers’ social contributions and in the corporate income tax rate, the bank noted.

The consumer price index is expected to remain constant this summer and then tick up at the end of the year.

Meanwhile, swelling global inflation has stalled in recent months, and the European Central Bank has cut its inflation forecast for the next years.

© 2015 Prospect News.
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