Hungary central bank raises base rate
Hungarian rate-setters raised the central bank’s base rate by 15 basis points to 1.65 percent at a scheduled meeting on Tuesday.
The Monetary Council slowed the pace of the central bank’s tightening cycle after deciding on 30bp base rate hikes at policy meetings in June, July and August, amid spiking inflation.
The council also decided on Tuesday to raise the O/N deposit rate by 15bp to 0.70 percent and the O/N and one-week collateralised loan rates by 15bp to 2.6 percent.
The O/N deposit rate and the collateralised loan rate mark the bottom and the top, respectively, of the central bank’s “interest rate corridor”. The base rate is paid on mandatory reserves and preferential deposits.
Commenting on the central bank’s latest quarterly Inflation Report, the council said
inflation was “expected to rise further in the autumn months and to stay above 5 percent during the remainder of the year”.
The gradual pass-through of increased commodity prices and freight costs into industrial goods prices is expected “to be decisive” in the case of underlying inflation, while core inflation is expected to rise “close to 4 percent” during the rest of the year.
The policymakers said the effects of the bank’s tightening cycles “will be clearly felt” in 2022, as inflation starts to fall “from the beginning of 2022”, then returns to the central bank’s 2-4 percent tolerance band “in the second quarter”.
CPI is expected “to stabilise around the 3 percent central bank target” in the second half of 2022, they added.
Read alsoThe wealthiest Hungarians to become even richer
Source: MTI
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1 Comment
Continual ongoing Deepening Concern – for Citizens of Hungary.
One area of the Control and Management of a countrys Economy that is deepening growing in its impact into the daily lives of Hungarians is – Inflation.
It’s apex is distanced and we should not disregard its monumental effect that rising elevated levals of Inflamation – have on the lives, of those of us who live in Hungary on a lower status of life-style.
Social Inequality – continues to grow and spread in Hungary – the World in fact and rising Inflamation in an Economy that has large and high degrees – of vulnarability and question marks over it – such as Hungary – the rise of Inflamation does have deep and nasty claws – that cause Civilian pain.
History – Bletchley Park in the United Kingdom – what was undertook in its buildings in the course of the Second World War – and what it acheived and its LEGACY – it left to History.
What a time in the History of Hungary – to – FACTUALLY – do an audit of the books of the present Government / Fidesz Party – and ascertain – the Monies – ALL – from ALL – the resources that has been handed to the present to the Government/Fidesz Party – not just EU money – but All money – and REPORT of its- Disbursment and Allocation – its Application and Usage.
The BIG 6 – do they have it in them to undertake a CHALLENGE as this Audit Examination – would involve ???
Statements they continually make in regards to use of Funds – support it with – FACTS.
Recomendations to the Big 6.
There are still many secret and large caves in Buda Hill that could become a place like Bletchley Park.
This “highly secreative ” facility’ – must not be near nor underneath the Residency of The President nor Prime Minister of Hungary – never know what lisening devices that are installed under and over ground ///
The Big 6 – put a team of economic “wizards” to-gether say 6-8 – with supportive staff – and set the task – to get ANSWERS – to the paramount question that I ask – and Humongous numbers of Hungarian citizens – Where has and What has Happened to – ALL repeat ALL – types and forms of Funding – that the present Government/Fidesz Party – have been Provided – over the past (10) ten years – Decade.
Facts – backed up with Evidance – when you speak to the citizens of Hungary – it be Candour – Truth – thats your ONLY Hope – the Big 6 – of making the upcoming National Elections May 2022 in Hungary – a Robust Election process that gives you a Possibility of Victory.