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.
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