Hungary Monetary Council forgoes making base interest rate decision

By Jennifer Chiou

New York, Oct. 4 - The Monetary Council of the Magyar Nemzeti Bank announced that it has opted to pass on making a decision on its central bank base interest rate.

At the end of September, the rate was left unchanged at 5¼%.

As already reported, the council of the Hungarian central bank deemed that the domestic economy has begun to emerge from recession, adding that output is likely to return to its potential level slowly.

The council also already stated that it felt inflation would ease back toward the 3% inflation target on the current horizon for monetary policy due primarily to persistent weak domestic demand.

According to a prior release, the council left the rate unchanged in light of the recent inflation developments but warned that if upside inflationary risks occur or risk perceptions rise, it may be necessary to raise the interest rate.

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