The National Bank of Hungary leaves base rate unchanged at 0.90 pc

Budapest, June 21 (MTI) – Hungarian rate-setters left the base rate unchanged at 0.90 percent at a regular meeting on Tuesday.

The National Bank of Hungary’s decision was in line with market expectations.

The Monetary Council also left the interest rate corridor, a band around the base rate that prevents extreme fluctuations of interbank rates, unchanged. The over-night collateralised loan rate, the top of the range, stands at 1.15 percent, while the O/N central bank deposit rate is -0.05 percent.

In a statement, it said inflationary pressures “remain moderate for an extended period”

“If the assumptions underlying the [NBH’s] projections hold, the current level of the base rate and maintaining loose monetary conditions for an extended period are consistent with the medium-term achievement of the inflation target and a corresponding degree of support to the economy,” the council said, echoing a statement made after the previous policy meeting in May.

“If the Monetary Council assesses it necessary in the future, it may also decide to use unconventional tools,” it added.