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HUNGARY: NBH Reiterate Data-Dependent, Month-by-Month Approach to Policy

HUNGARY

Highlights from the minutes:

  • The Council’s unanimous view was that all these factors continued to warrant a careful and patient approach. In line with this, members voted unanimously in favour of reducing the base rate by 25 basis points.
  • Members agreed that the Monetary Council’s forward guidance should be modified in June. They noted that a new phase would begin in June, where the Monetary Council would assess incoming macroeconomic data, the outlook for inflation and developments in the risk environment from month to month
  • In the view of members, it should be stressed that the expected higher level of US interest rates for a prolonged period would reduce central banks’ room for monetary policy manoeuvre in emerging economies.
  • In assessing the outlook for inflation, Council members highlighted that the short-term outlook for inflation had improved.
  • However, members also noted that the decline in core inflation would stop in the second quarter and was projected to rise, reaching nearly 5.0 percent by the end of the year.

See the full release here.

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Highlights from the minutes:

  • The Council’s unanimous view was that all these factors continued to warrant a careful and patient approach. In line with this, members voted unanimously in favour of reducing the base rate by 25 basis points.
  • Members agreed that the Monetary Council’s forward guidance should be modified in June. They noted that a new phase would begin in June, where the Monetary Council would assess incoming macroeconomic data, the outlook for inflation and developments in the risk environment from month to month
  • In the view of members, it should be stressed that the expected higher level of US interest rates for a prolonged period would reduce central banks’ room for monetary policy manoeuvre in emerging economies.
  • In assessing the outlook for inflation, Council members highlighted that the short-term outlook for inflation had improved.
  • However, members also noted that the decline in core inflation would stop in the second quarter and was projected to rise, reaching nearly 5.0 percent by the end of the year.

See the full release here.