MNB cuts 2018-2019 inflation forecasts, maintains GDP projections



The National Bank of Hungary (MNB) maintained its 2.4% inflation forecast for this year and kept its GDP projections unchanged for three years in its fresh quarterly Inflation Report released Tuesday.

The central bank kept its CPI forecast for 2017 at 2.4%. It lowered the forecast for 2018 annual average inflation to 2.5% from 2.8% in the previous report published in June, and cut the forecast for 2019 from 3% to 2.9%.

The MNB is predicting 3.6% GDP growth this year, 3.7% next year and 3.2% in 2019, all in line with its June projections, national news agency MTI reported. 

A chart published yesterday indicates that the MNB has postponed once again the time when it expects CPI to reach its 3% mid-term target by another quarter, to the middle of 2019. The central bank interprets the inflation target in a +/-1% tolerance band.

The MNB noted that, for 2016, it is expecting the Central Statistical Office (KSH) to revise its GDP growth figure of 2% upwards to 2.2%. The bank issued a similar notice in its March and June Inflation Reports.

The Hungarian government forecasts GDP growth to accelerate to 4.1% this year and to 4.3% next year, and predicts inflation at 1.6% in 2017 and 3% in 2018 in an update of the countryʼs Convergence Program.


EBRD Sees Hungary GDP Growth Slowing to 1.5% in 2023 Analysis

EBRD Sees Hungary GDP Growth Slowing to 1.5% in 2023

Horthy Statue to be Unveiled in Parliament Parliament

Horthy Statue to be Unveiled in Parliament

UPS Appoints Regional Director Appointments

UPS Appoints Regional Director

Completion of Metro Line M3 Renovation Delayed City

Completion of Metro Line M3 Renovation Delayed


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.