• Coronavirus in Hungary
  • coronavirus
  • Budapest
  • Covid immunity certificate in Hungary
  • Covid immunity certificate/vaccine passport
  • Hungary border control
  • HelloMagyar
Hungarian central bank policy makers could weigh rate hike in JuneHungarian central bank policy makers could weigh rate hike in JuneHungarian central bank policy makers could weigh rate hike in JuneHungarian central bank policy makers could weigh rate hike in June
  • Politics
  • Business
  • Society
  • Sport
  • Culture
  • Special Hungary
  • News To Go
  • World
  • Contact Us
  • About us
  • About us
  • Contact Us
  • Privacy Policy
✕
Support us
Daily News Daily News · 17/05/2021
· Business

Hungarian central bank policy makers could weigh rate hike in June

economy Hungarian economy Hungary National Bank of Hungary
national bank of Hungary -mnb nbh

Photo: Alpár Kató - Daily News Hungary

The Monetary Council of the National Bank of Hungary (NBH) could consider raising the base rate at a policy meeting in June, deputy governor Barnabás Virág said on Monday, Reuters reported.

Virag said Hungary’s monetary policy would enter a new phase from June as the economy fully reopens, and the central bank would adjust short-term rates proactively to tackle rising inflation risks.

He said rate rises could precede any decision about asset purchases, and the NBH’s next quarterly Inflation Report, which the Monetary Council will discuss at the June policy meeting, would be critical in assessing risks.

“This will be a data-driven process, in several steps…and the possibility of a hike in the base rate is worth assessing already in June,” Virág told journalists.

He said the economy will rebound dynamically from the pandemic-induced shock, with GDP growth seen now closer to 6 percent this year, due to a strong rise in demand.

  • read also: IMF satisfied with Hungary’s response to crisis, says central bank

Virág said upside inflation risks have clearly risen since March, and the NBH would do everything to prevent second-round effects.

“We must not underestimate the risks of a sustained rise in inflation, and we will react to inflation risks pro-actively,” Reuters cited Virág as saying.

“We will deploy a mixed strategy: we will shape short-term rates proactively…working on the phasing out of crisis management tools in parallel with that,” he said.

He said the bank would react to sustained inflation risks by changing its key base rate, while the one-week deposit rate would be used to tackle short-term shocks in risk premia, Reuters reported.

The NBH’s base rate has been unchanged at 0.60 percent since July 2020.

mnb-central-bank-hungary
Read alsoHungary central bank leaves rates steady as inflation spike looms

Source: Reuters/MTI

economy Hungarian economy Hungary National Bank of Hungary
Share
Daily News
Daily News

Related posts

City of Szécsény, Hungary
28/06/2022

Support for local councils to increase next year, says Hungarian finance minister


Read more
national bank of Hungary -mnb nbh
28/06/2022

Hungarian central bank has raised interest rates by a huge amount


Read more
Fuel cap in Hungary
28/06/2022

700 filling stations run out of some fuel types every week in Hungary


Read more

Leave a Reply

Your email address will not be published. Required fields are marked *

SUPPORT US

Subscribe to our newsletter

Sign up to receive daily updates, news & stories about Hungary!

Select your location below or enter your country so we can deliver our morning newsletters to you in time.


Thank you!

You have successfully joined our subscriber list.


.


Latest news
  • Budapest to introduce new uniform parking system
  • Hungarian space paprika is better than NASA’s
  • Orbán: ‘We must not get dragged into war’
  • More than 105,000 illegal migrants caught at border so far this year

About us

Contact us

© 2022 DailyNewsHungary. All rights reserved!
Posting....