Inflation, the forint, and your wallet: Hungary’s latest central bank move
Members of the Monetary Council of the National Bank of Hungary (NBH) voted unanimously to keep the central bank base rate on hold at 6.50pc at a monthly policy meeting on 22 July, the minutes from the meeting show.
In the context of the July decision, the Monetary Council discussed one option for the decision, which was leaving the base rate unchanged.
In the Council members’ assessment, the global economic environment continued to be uncertain. The Council members agreed that, given previously identified upward risks were still persisting, the inflation target could be reached by ensuring tight monetary conditions.
The Council agreed that to assess the persistence of the effects that resulted the decrease in the current account balance in May, the developments in the external balance had to be monitored with special attention.
Decision makers agreed that the NBH could still make the greatest contribution to the easing of the precautionary measures and to sustainable economic growth by maintaining price stability and financial market stability.
Decision makers highlighted that the stability of the foreign exchange market was of particular importance for achieving the inflation target and maintaining financial market stability.
In the decision makers’ assessment, changing the forward guidance was not warranted. The Council agreed that in a dynamically changing environment, a careful and patient approach to monetary policy remained necessary. In the Council members’ assessment, maintaining tight monetary conditions was warranted.
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