Matolcsy flags possible rate rise in June 

MNB

György Matolcsy

National Bank of Hungary (MNB) governor György Matolcsy said the central bank could raise its key interest rate in June at a conference organized by business daily Világgazdaság on Wednesday.

Matolcsy said a turnaround in monetary policy could begin in June if the members of the MNB's rate-setting Monetary Council see fit.

He added that a prolonged rise in inflation could put the economic recovery at risk.

He said the economy could weather a rate rise.

MNB deputy governor Barnabas Virág told journalists in May that the Monetary Council could weigh a rise in the base rate at a monthly policy meeting in June.

"We must not underestimate the risks of a sustained rise in inflation, and we will react to inflation risks proactively," he said.

MNB policymakers have kept the base rate on hold at 0.60% since last summer, but inflation reached 5.1% in April and May, well outside of the +/- one-percentage-point tolerance band around the central bank's 3% mid-term target.

ADVERTISEMENT

Business confidence falls slightly in June Analysis

Business confidence falls slightly in June

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

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.