Rate-setters again acknowledge looser policy risks, but wait for inflation report

Interview

At a policy meeting on February 24, the National Bank of Hungary's rate-setting Monetary Council again acknowledged that risks pointing in the direction of a lower base rate had increased, but agreed to decide on any possible rate change only after reviewing the central bank's next Inflation Report, the condensed minutes from the meeting published Wednesday show.

"Members agreed that risks pointing in the direction of looser monetary policy had increased over the short term, however, they would consider the need for possible further easing of monetary conditions in view of the March Inflation Report projection, after a comprehensive assessment of the medium-term outlook for inflation and for the real economy," according to the minutes.

The Council is scheduled to discuss the final version of MNB's fresh Inflation Report at a policy meeting on March 24.

At the meeting in February, the rate-setters voted unanimously on a single proposal to keep the central bank's key rate unchanged at 2.10%.

After a rate-setting meeting last July, the Council said it had wound up an easing cycle started almost two years earlier.

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