Monday, May 16, 2011

Hungary Central Bank Holds Rate at 6.00%

The Magyar Nemzeti Bank maintained its policy rate unchanged at 6.00% despite inflation rising above its target.  The Bank said: "inflation is expected to be significantly above the target in the short term…but may fall back close to 3% by the end of next year even without further policy tightening".  Hungary reported annual inflation of 4.7% in April, up from 4.5% the previous month, meanwhile food inflation rose to 9.4% from 8.6% respectively.  Hungary's Central Bank has a medium term inflation target of 3%.


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