MNB base rate could climb above 10%, City analysts say


According to the significantly revised forecasts of London-based emerging markets analysts, the base rate of the National Bank of Hungary (MNB) could climb above 10% this year as The Monetary Council of MNB decided to raise the base rate by 185 bp to 7.75% at a monthly policy meeting on Tuesday, according to a report by state news wire MTI.

Analysts at Morgan Stanley revised their expectation for the base rate at the end of Q3 upwards to 10% from their earlier 8.9% estimate.

The analysts do not rule out MNB ending its tightening cycle in September if inflation stabilizes, but they still think it is highly probable that there will be a 25 bp base rate hike in October, meaning the base rate could peak at 10.25% in Q4.

Analysts at Capital Economics said the Hungarian central bank could continue to tighten its monetary policy aggressively and could raise the base rate to 10.5% by the end of the year. Previously Capital Economics expected the base rate to peak at 8.2% in 2022.



Zwack Profit Climbs 8% Figures

Zwack Profit Climbs 8%

Parl't Approves Amendments to Legislation on Judiciary Parliament

Parl't Approves Amendments to Legislation on Judiciary

Magnus Aircraft Signs CNY 65 mln Order Deals

Magnus Aircraft Signs CNY 65 mln Order

Accommodation Fully Booked Over Pentecost Weekend Tourism

Accommodation Fully Booked Over Pentecost Weekend


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.