Base rate cuts depend on conditions
The Hungarian central bank (MNB) may continue to decrease the base rate if the quarterly inflation report that is to be published Aug 27 confirms the optimistic forecasts, member of MNB’s Monetary Council Péter Bihari said to Reuters.
If the coming reports show that the inflation target will be met in the next 6–8 quarters, the current trend of rate cuts can be continued. However, larger cuts are not possible because of the fragile international investment environment and the domestic risks. The prime rate was last time lowered by 25 base points to 7.75% in June. MNB is assessing the risks of increasing food prices; but these are likely to only have single, short-term effect. This way, VAT reduction of edibles suggested by Agriculture Minister József Gráf is not necessary; the transparency of the tax system is more important, Bihari added. (Napi Gazdaság, Gazdasági Rádió)
ADVERTISEMENT
ÁKK Cutting Premiums on PMÁP
Parl't Approves Amendments to Legislation on Judiciary
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
