NBH Policymakers Keep Base Rate On Hold

  • 22 Aug 2018 9:58 AM
  • Hungary Matters
NBH Policymakers Keep Base Rate On Hold
The National Bank of Hungary’s Monetary Council decided to keep the central bank’s key rate on hold at 0.90% at a monthly policy meeting. The Council has left the base rate on hold since signalling an end to an easing cycle at a policy meeting in the spring of 2016.

However, the rate-setters have made use of “unconventional, targeted” instruments to ease monetary policy further.

The Council also left the overnight central bank deposit rate at -0.15% and the overnight collateralised loan rate at 0.90% at the meeting.

“In the Council’s assessment, maintaining the base rate and the loose monetary conditions is still necessary to achieve the inflation target in a sustainable manner,” the rate-setters said in a statement after the meeting, reiterating a stand taken after other recent policy meetings.

The NBH sees CPI reaching the 3% 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.

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