Hungary central bank keeps rates on hold

Hungarian central bank (NBH) rate-setters kept the base rate at 0.60 percent at a scheduled meeting on Tuesday. The interest rate corridor was also kept at the same level.

In a statement released after the meeting, the Council repeated its earlier policy stand.

“The monetary conditions established at the short end support price stability, the preservation of financial stability and the recovery of economic growth in a sustainable manner,” the policy makers said.

The Council also reiterated that it is “key” to keep short-term yields at a “safe distance from a range close to zero” as well as their commitment to “maintaining price stability during the coronavirus pandemic”.

The Council said it closely monitors “the persistence of inflationary effects” resulting from the economic recovery as well as “possible inflationary effects of financial market developments”.