Hungary's central bank board deeply divided on keeping interest rate flat.

By bne IntelliNews September 9, 2010
The members of the Monetary Council (MC) of the National Bank of Hungary (NBH) are deeply divided on whether to keep the base interest rate at 5.25% at its latest meeting on August 23, the minutes of the meeting revealed. Four of the attending MC members supported this decision, while two members, including NBH governor Andras Simor, voted in favour of a 25bps rate hike, and one member backed a 25bps cut. The majority of the board members supported the cautious wait-and-see approach, considering the lack of sufficient information. According to them, tightening was not currently justified by the recent adverse developments. Furthermore, any favourable shift could only be expected following an announcement of the government's economic policy plans. Members calling for a rate rise doubted that the government measures would be enough to bring inflation down towards the medium-term target. They believed also that the inflationary pressure arose from the weakening of the forint and the fluctuations of the commodity prices.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Assets of Hungarys investment funds up 3.2% m/m in Feb 2013.

Hungary's investment funds had aggregate assets of HUF 3.657tn (EUR 11.98bn) as of end-February 2013, up by 3.2% m/m, MTI news agency reported citing data from the association of investment funds ... more

Hungary's number of employees down 0.6% y/y in Jan 2013.

The number of employees in Hungary's public and private sectors fell for the tenth straight month in January 2013 declining by 0.6% y/y to 2.574mn, the statistics office informed. The decline ... more

Hungarys MVM clears deal for purchasing E.ONs local units.

The assembly of state-owned Hungarian Electricity Works (MVM) has approved the purchase of the local gas business of German power utility E.ON, Hungary AM reported, citing local daily Magyar ... more

Follow Us On

Most Read

  1. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    8 days ago
  2. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    1 month ago
  3. Fresh evidence suggests that the April 2022 Istanbul peace deal to end the war in Ukraine was stillborn
    8 days ago
  4. Don't mention the "D" word - Ukraine
    5 days ago
  5. Europe unlikely to tackle Russian LNG imports anytime soon
    2 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    26 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    30 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. BRICS announce a blockchain-based payment system to create a common currency
    28 days ago
  5. Saudi Arabia to scale back plans for Neom city
    15 days ago

Reports

Dismiss