- 26 Feb 2020 6:44 AM
- Hungary Matters
The Monetary Council has not changed the base rate since May 2016. In a statement issued after the meeting, the Council said it would continue to decide on adjustments to monetary policy on a quarterly basis, saying it would carry out a “comprehensive assessment of macroeconomic developments” in the next Inflation Report, due to be published when the rate-setters meet in March.
The Council reiterated that it expects CPI to “return to the [+/- 1pp] tolerance band by the end of the first quarter of 2020, and to stabilise at the 3% inflation target in the second half of the forecast horizon”.
The Council said sentiment on global markets had “rather deteriorated” since the last policy meeting, citing the coronavirus outbreak as a reason.
The Council noted a slowdown in Hungary’s growth rate, but said the economy was expected to continue to expand at a clip of “at least two percentage points” over growth in the euro zone.