Hungary keeps base rate steady at 0.9% as inflation stays on course

By Susanna Moon

Chicago, Aug. 22 – The Monetary Council of Hungary’s Magyar Nemzeti Bank decided to maintain the central bank base rate at 0.9% at its meeting on Tuesday.

There has been no “upward pressure on inflation from wages,” in line with expectations and global inflation has eased in the past months after ticking up at the end of last year, according to a bank statement.

“The external inflation environment, particularly in the euro area, is likely to remain low for a prolonged period,” the bank added.

Meanwhile, the country’s economic growth will speed up over the forecast horizon and there is some unused capacity in the economy but it will likely “be gradually absorbed as output grows dynamically.”

The bank said it expects to hit the inflation target “in a sustainable manner from early 2019.”

Inflation climbed to 2.1% in July and core inflation rose to 2.6%. The consumer price index is expected to increase in the coming months before returning to current levels by the end of the year.

© 2015 Prospect News.
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