Hungary’s rate watchers hold the line as inflation shadows linger
Members of the rate-setting Monetary Council of the National Bank of Hungary (NBH) will closely follow the persistence of changes to market service price dynamics and inflation expectations in the coming period, the policy-makers said at a meeting in April.
“In the coming period, the Council would pay particular attention to the persistence of the shifts in market services price dynamics and in inflation expectations,” the minutes from the monthly policy meeting released on Wednesday show.
“The general view among members was that maintaining a restrictive monetary policy stance was still necessary, and the maintenance of positive real interest rates ensured the achievement of price stability,” the minutes said.
The policy-makers discussed a single option at the meeting on 29 April: leaving the base rate unchanged. The vote to keep the base rate at 6.50pc was unanimous.
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