The Hungarian Central Bank Is Preparing for a Fateful Step, We Show the External Influences that Could Determine the Markets
5 Articles
5 Articles
The Monetary Council of the Hungarian National Bank (MNB) will meet again on Tuesday, and there could be plenty of events this time. The central bank will review whether easing can continue after the summer “mini interest rate cut cycle” and will also publish fresh macroeconomic forecasts. In fact, it may even do something that has been whispered about for weeks: the inflation target may change for the first time since 2005, which could rewrite …
The MNB has cut the base rate by a total of 75 basis points in three consecutive months, but the series of interest rate cuts may come to a halt in September. Although inflation is only 1.3 percent, geopolitical tensions, rising energy prices, the forint exchange rate and the international yield environment are leaving the central bank with increasingly narrow room for maneuver. Ákos Sümegi, Mariann Trippon and István Madár, interviewed by Pénzc…
Analysts expect an unchanged interest rate after the central bank's Monetary Council meeting on Tuesday. The big question is, will Mihály Varga change the current 3 percent medium-term inflation target?
After three months of consecutive interest rate cuts, central bankers may once again adopt a strict tone at their September meeting.
It may just be taking a break, but it is also possible that the Hungarian National Bank will not relax monetary conditions at all this year. Experts speaking to the Mfor Analysts' Consensus clearly see the biggest risk in the Middle East conflict, the resulting increase in energy prices and the resulting inflationary threat. The big question, however, is whether Mihály Varga will make the long-awaited announcement.
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