The prime minister said Hungary is battling with Brussels over government measures freezing interest rates for retail borrowers and mandating caps on markups for a range of food and non-food...
The Council also decided to keep the central bank’s O/N deposit rate at 12.5% and the O/N collateralized loan rate at 25%.
The Council said it was necessary to maintain tight monetary conditions over a prolonged period, “which will ensure that inflation expectations are anchored and the inflation target is achieved in...
Now one type of student loan will be capped at 4.99% from January 2023, while another will be still available interest-free for students in higher education.
The Monetary Council also left the O/N central bank deposit rate at 0.15 percent and the O/N collateralized loan rate at 0.90 percent at a meeting on Tuesday
The council said that the central bank’s 3.0 percent inflation target is expected to be achieved by the middle of 2019, one quarter later than in a projection released three months earlier
In a statement, the monetary 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
The bank also cut its overnight collateralized loan rate by 15 basis points to 0.9 percent, narrowing the interest rate corridor
Between the first quarter of 2014 and the first quarter of 2016 the Budapest house prices jumped by more than 50 percent, while properties in the countryside rose by 20 percent
"It is clear that there are serious structural forces at play, which contribute to inflation being this low, such as globalization and changing demographic trends," the managing director of the National Bank of Hungary has said
The central bank's Monetary Council said that the outlook on inflation “remains moderate for an extended period”
The bank will keep rates on hold "as long as possible" and only adjust if necessary