Hungary’s NBH Leaves Rates On Hold, As Expected
- 27 Aug 2014 9:00 AM
Hungary’s central bank rate-setters left the base rate unchanged at 2.1% at their regular rate-setting meeting on Tuesday. The decision was in line with market expectations. After the previous rate-setting meeting on July 22, when the base rate was reduced from 2.3% to the current level, the Council said it had wound up an easing cycle started almost two years earlier.
Ever since, 490 basis points have been cut. The Council said the base rate had “reached a level which ensures the medium-term achievement of price stability and a corresponding degree of support for the economy”.
According to the minutes of the earlier meeting, the Council saw “persistently loose monetary conditions” in the macroeconomic outlook, although noting that a “cautious approach to policy” was warranted because of “uncertainty about future developments in the global financial environment”.
Source www.hungarymatters.hu
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