NBH Say External Risks Continue to Warrant Cautious Approach

Highlights from the policy statement:

• Strong disinflation and the stability of financial markets allow the MNB to continue shaping monetary conditions by lowering the base rate. At the same time, external risks continue to warrant a cautious approach.
• With disinflation accelerating, the domestic real interest rate has risen further. The positive real interest rate supports the further decline in inflation.
• Risks surrounding global disinflation and volatility in international investor sentiment warrant a careful approach to monetary policy.
• Heightened geopolitical tensions are posing increased risks to the outlook for the global economy in general.
• International risk appetite has been volatile since the September policy decision.* In the coming months, domestic CPI inflation and core inflation will continue to decrease.

See the full policy statement here.