Hungary central bank raises key rate by 30 basis points
Hungary rate-setters at a regular policy meeting on Tuesday raised the base rate by 30 basis points to 2.10 percent while also raising both sides of the interest rate corridor by 30 basis points.
The policymakers accelerated the tightening cycle following 15 basis point hikes in the previous two months after October hit 6.5 percent.
Besides the hike to the base rate today,
the Monetary Council raised the O/N deposit rate by 30bp to 1.15 percent and the O/N and one-week collateralised loan rates by 30bp to 3.05 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”.
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Source: MTI
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Governor Matolcsy – when he talks people are LISTENING.
“The crisis, the subsequent crisis management and recovery have been occompanied by rapid deterioration in all the balance indicators.”
We witness again – see increase in the base interest change by 30 basic points to 2.10% – and the increase rising – of the interest rate corridor – by 30 basic points.
Governor Matolcsy – DNH – article dated 15th November 2021 – commenting – that the Government needs to have a re-think on deficit spending – to restore Balance.
Interest rates – continue to rise and within Europe – the rates in Hungary – are at the “top of the tree.”
Pressure mounting on the huf – it’s – Devaluation – against “other” major global currencies – inflation – but pleasing that our GDP continues to sustain up-ward trend – not forgetting though – important to remember – the BIG catch up game – from February 2020 – that our Economy was “crumbled” – by the arrival and closures of our country, through this ongoing Novel Coronavirus and our GDP reflected a negative position on Hungary’s balance sheet.
Governor Matolcsy – his “Tone” of communication – that his position and opinion – does strongly tend to “put us on notice” – that he is Bearish – in the immediate to short term – on the Hungarian Economy.
The key – is the NEED – to restore balance in the economy – and thats the – MASSIVE Challenge – that our present Governmenr – are Faced with.
If – BALANCE – is not Restored – our pockets will be hit – in particular – through increased interest rates and inflation – which will have a flow on effect and major impact – driving forcing up-ward – our cost of living – which we know is presently occuring – the trend it is taking in Hungary.
Governor Matolcsy – when he talks – PEOPLE are Listening.