Monday, April 18, 2011

Hungary Central Bank Holds Interest Rate at 6.00%

The Magyar Nemzeti Bank held its main policy rate, the two-week deposit interest rate, unchanged at 6.00%.  Hungary reported inflation of 4.5% in March, slightly higher than the 4.1% recorded in February, and higher than the central bank's target of 3%.  Core inflation also rose to an annual 2.5% in March compared to 1.9% in February.  The Bank Said: "If incoming data suggest a greater pass-through from the cost shocks, it may be necessary to tighten current monetary conditions in response to upside risks to inflation.".  But also noted: "a slower-than-expected recovery in lending to households and weaker-than-expected domestic demand may warrant a reduction in interest rates in the medium term."


Post a Comment