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Feb 27, 2019

National Bank of Hungary keeps base rate on hold at 0.90 percent

After recent policy meetings, the Council has said it is “prepared for the gradual and cautious normalization of monetary policy”

The National Bank of Hungary’s Monetary Council has announced that it will keep the central bank’s key rate on hold at 0.90 percent.

The Council has left the base rate on hold 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.

After recent policy meetings, the Council has said it is “prepared for the gradual and cautious normalization of monetary policy”. In a statement released after a meeting on Tuesday, the Council reiterated its earlier stand and offered little new information on the possible timing of a policy shift.

The NBH releases its measure of core inflation excluding indirect tax effects — a gauge that captures “persistent inflationary trends” — every month. In January, the indicator rose to 3.0 percent, reaching the mark for the first time since February 2012.