National Bank of Hungary
Photo: DNH

Hungary’s central bank has said inflation is likely to be higher in 2019 and the following two years than its earlier forecast.

In a preliminary release of the main forecasts from its quarterly Inflation Report due on Thursday, the National Bank of Hungary raised its forecasts by 0.1 of a percentage point to 3.2 percent this year and by 0.3pp to 3.4 percent in 2020 and by 0.3pp to 3.3 percent in 2021.

The bank’s last Inflation Report was released in March.

It confirmed inflation was 2.8 percent in 2018.

The Monetary Council of the National Bank of Hungary (NBH) decided to keep the central bank O/N deposit rate at -0.05 percent and the base rate at 0.90 percent at a monthly policy meeting on Tuesday.

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