Hungarian central bank makes base rate cut decision

forint money collector coin central bank

Photo: depositphotos.com

Hungarian central bank (NBH) rate-setters cut the base rate by 25 basis points to 6.75 percent, while lowering both ends of the interest rate corridor to the same extent, at a regular policy meeting on Tuesday.

Hungarian central bank’s decision

In a statement released after the meeting the Council said inflation data was consistent with the projection in the June Inflation Report.

It said the growth of the Hungarian economy, high foreign exchange reserves, the persistent current account surplus, the government’s deficit reduction measures and a cautious approach to monetary policy all improved the country’s risk perception, adding, at the same time, that geopolitical tensions and the risks to the outlook for inflation “continue to warrant a careful and patient approach”.

Among the favourable domestic trends, the Council highlighted the improvement in consumer confidence, the increase in real wages and growing household consumption. “With the pick-up in the production of new industrial capacities built recently, balanced economic growth is expected from 2025, and Hungary’s export market share is likely to increase,” the statement said.

The Council put GDP growth at 2.0-3.0 percent for this year and inflation between 3.0 percent and 4.5 percent.

It said it was “constantly assessing incoming macroeconomic data, the outlook for inflation and developments in the risk environment, based on which it will take decisions on the level of the base rate in a cautious and data-driven manner”.

Read also:

Featured image: depositphotos.com

If you would like to support the work of the Daily News Hungary staff and independent journalism,
please make a donation here

Hot news

1 Comment

Doctoring of Figures - a Game of Trickery - imposed on the Hungarian Population : says:

24/07/2024 at 10:23

Interesting.
Simple response to this ‘Questionable” article, is that the Hungarian Central Bank FORGOT, to “turn the page” read what’s on the other side.
The Hungarian Central Bank, take the position rightfully, they can ONLY report from what comes “across there desk” – from “other” Fidesz Government Departments – to compile reports for “Public Disclosure” as is the subject of this article.
The Minister of Finance Department, under the Finance Minister – Mihaly Varga, is an area that is a gargantuan “feeder” of Economic & Financial figures and statistics to the Hungarian Central Bank.
Simple, I write again, my confidence, my BELIEF – in what in any form on the Economic & Financial position of Hungary, that comes out of the office of the Orban – Fidesz Government – Finance Minister’s office – Mihaly Varga is treated by me with MASSIVE trepidation.
“To tell the TRUTH, the Whole Truth and NOTHING but the TRUTH” – paint the picture as it FACTUALLY is, not VEIL it, by the use of mis-leading PROPAGANDA – and rhetoric that is not Truth & Fact, a “tactic” constantly practiced, for the past (9) nine years, by the current Finance Minister – Mihaly Varga.
I have NO respect nor confidence in Varga’s opinions on Economic & Financial matters relating to Hungary.
Varga- history, his “examination” card, over his years as the Finance Minister of the Orban – Fidesz Government, highlights – that FAILING’s greatly outnumber those of a Pass mark.
Varga is in NEED of re-education in what he projects him-self, this “guru” expert one of “eminence” in Finance & Economics.
Varga, is muchly in the “inner sanctum” of the Fidesz Party, a founding member of the party in fact, with the current Prime Minister of Hungary, and President of the European Union, and Leader of the Fidesz Political Party – Victor Mihaly. Orban.
The (2) two “Spin Doctors” of the Orban – Fidesz Government are :
– Mihaly Varga – Finance Minister.
and;
– Peter Szijjarto – Minister of Foreign Affairs & Trade.
Varga – continues to THROW out there – that the Hungarian Economy has returned to a GROWTH path.
This is NOT fact nor truth, but FALSE – the reverse in FACT of the PATH the economic and financial TREND is – of the DECLINING, in it’s core componentry, the FACTUAL picture of the economic & financial and “other” of Hungary.
“Lies, dammed Lies and statistics” – the “manipulation” of factual figures, this is a “major” behaviour – practice – that comes out, in a repetitive in practice, the office – the Department of Finance of the Orban – Fidesz Government, under headed and led by – Mihaly Varga.
The “other” side of the paper UGLY – but the FACTUAL picture and the TRUTHFUL one – Hungarians.