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Aug 22, 2018

NBH keeps base rate on hold at 0.90 percent

The National Bank of Hungary’s Monetary Council has decided to keep the central bank’s key rate on hold at 0.90 percent

The National Bank of Hungary’s Monetary Council has decided to keep the central bank’s key rate on hold at 0.90 percent.

During the Bank’s monthly policy meeting on Tuesday, the rate-setters made use of “unconventional, targeted” instruments to ease monetary policy for the rest of the quarter.

According to MTI, the Council also left the overnight central bank deposit rate at -0.15 percent and the overnight collateralized loan rate at 0.90 percent.

The Council stated that maintaining the base rate and the loose monetary conditions is still necessary to achieve the inflation target in a sustainable manner.

The report states that NBH sees CPI reaching the 3 percent target from the middle of 2019 as the temporary, inflation-boosting effects of oil price changes fade. The Council said the volatile international environment “continues to suggest a more cautious approach” to monetary policy. The rate-setters also said they would stick to using their current set of monetary policy tools.