Hungarian central bank keeps rates on hold in first rate-setting meeting under new MNB leadership

Hungarian central bank keeps rates on hold in first rate-setting meeting under new MNB leadership

Hungary's Monetary Council left the base rate on hold at 6.5% for the sixth straight month on 25 March at the first rate-setting meeting under the new MNB leadership in line with the consensus.

Hungary's central bank holds base rate at 6.5 pct

BUDAPEST, March 25 (Xinhua) -- The National Bank of Hungary (MNB) kept its base rate unchanged at 6.5 percent on Tuesday, maintaining a tight monetary stance amid elevated inflation risks. Read full story

The Monetary Council is committed to achieving the inflation target in a sustainable manner. A cautious, patient monetary policy is still needed, therefore the base rate may remain for a longer period of time, said Central Bank Governor Mihály Varga on Tuesday, after the Monetary Council left the base rate at 6.5 percent. The Central Bank Governor also said that inflation may decline in the coming period, while the economy may expand faster in t…

The 6.50 percent level remains.

Hungary to Hold Rates at Varga’s First Meeting

Hungary’s central bank is poised to continue holding interest rates at the first policy meeting under Governor Mihaly Varga, with investors closely watching for any shift in guidance in the face of accelerating inflation.

Although the step is a formality, its impact is still important.