The National Bank of Hungary’s Monetary Council has kept the central bank’s base rate on hold at 0.90 percent, it has been announced.
In a statement, the council repeated its earlier stand on keeping the base rate on hold “for an extended period”, while staying prepared to ease monetary conditions with unconventional instruments.
“If the assumptions underlying the [NBH]’s projections hold, maintaining the current level of the base rate and loose monetary conditions achieved through the change in monetary policy instruments for an extended period is consistent with the medium-term achievement of the inflation target and a corresponding degree of support to the economy,” the council said.
“If inflation remains persistently below the target, the council will stand ready to ease monetary conditions further using unconventional, targeted instruments,” the rate-setters added.
The council said a “watchful approach” to monetary policy is justified because of uncertainty in the global financial environment.