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Jan 30, 2019

MNB keeps central bank’s base rate on hold at 0.90 percent

The National Bank of Hungary’s Monetary Council has announced that it will keep the central bank’s base rate on hold at 0.90 percent at a monthly policy meeting held on Tuesday

The National Bank of Hungary’s Monetary Council has announced that it will keep the central bank’s base rate on hold at 0.90 percent at a monthly policy meeting held on Tuesday.

According to MTI, the council held the base rate since signaling an end to an easing cycle at a policy meeting in the spring of 2016. However, the rate-setters have made use of “unconventional, targeted” instruments to ease monetary policy further.

Following the latest meetings, the council has said it is “prepared for the gradual and cautious normalization of monetary policy” but has signaled any tightening would start with adjustments to unconventional policy tools, before any changes to the base rate can be made.