NBH Release April Meeting Minutes

Highlights from the minutes:

• The Monetary Council was in agreement that maintaining tight monetary conditions would be necessary to achieve price stability over the long term; therefore, they unanimously argued in favour of maintaining the base rate at its prevailing level over a prolonged period.
• Council members underlined that a careful, cautious approach was warranted when setting the interest rates on overnight instruments. Therefore, at the following rate-setting meetings the MNB would consider the persistence of the improvement in risk perceptions, which would be a key factor in setting the interest rate conditions on overnight instruments.
• Members emphasised that inflation had continued to moderate in March, mainly driven by a slowdown in food and fuel price inflation.
• Council members were unanimous in arguing that the consumer price index might fall at an accelerating pace in the coming months.
• The Council agreed that the tight monetary conditions achieved by the cycle of rate hikes… would have an increasingly strong disinflationary effect.

See the full meeting minutes here: https://www.mnb.hu/letoltes/roviditett-jegyzokonyv...