Free Trial

HUNGARY: Outlook for Inflation Warrants Patient Approach to MonPol

HUNGARY

Little new information of note in the minutes release, with familiar themes being reiterated by the central bank. Highlights are as follows:

  • The starting economic growth in Hungary, historically high foreign exchange reserves, a persistent improvement in the current account balance and a cautious approach to monetary policy had contributed to an improvement in the country’s risk perception.
  • However, the volatile financial market environment and the risks to the outlook for inflation continued to warrant a careful and patient approach.
  • Discussing the outlook for domestic inflation, the decision makers noted that the pace of price increases would rise temporarily in the middle of this year.
  • Another decisive aspect was the effect of the international monetary policy environment, particularly the persistently high interest rate environment in the US, on the room for interest rate policy manoeuvre in Hungary.

See the full release here

137 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Little new information of note in the minutes release, with familiar themes being reiterated by the central bank. Highlights are as follows:

  • The starting economic growth in Hungary, historically high foreign exchange reserves, a persistent improvement in the current account balance and a cautious approach to monetary policy had contributed to an improvement in the country’s risk perception.
  • However, the volatile financial market environment and the risks to the outlook for inflation continued to warrant a careful and patient approach.
  • Discussing the outlook for domestic inflation, the decision makers noted that the pace of price increases would rise temporarily in the middle of this year.
  • Another decisive aspect was the effect of the international monetary policy environment, particularly the persistently high interest rate environment in the US, on the room for interest rate policy manoeuvre in Hungary.

See the full release here