MNB puts CPI 'mostly above' tolerance band till year-end
MNB headquarters in Budapest.
Photo by Andocs / Shutterstock.com
National Bank of Hungary (MNB) policymakers said inflation "is likely to stay mostly above" the central bank's 2%-4% tolerance band until the end of 2021, commenting on the MNB's fresh quarterly Inflation Report after a monthly policy meeting on Tuesday, according to a report by state news wire MTI.
MNB raised its forecast for annual average inflation this year to 4.1pc in the latest report from 3.8%-3.9% in the report released in March.
"After the spike in the second quarter, the consumer price index is expected to fall close to 4% at a slower-than-expected pace during the summer months before rising slightly again at the end of the year," the MNB's rate-setting Monetary Council said.
"Due to base effects, inflation is expected to fall back into the central bank's tolerance band again at the beginning of 2022 and to stabilize around the [3%] central bank target from mid-2022 as a result of monetary policy measures," the policymakers added.
The report's main forecasts show CPI slowing to 3.1% in 2022 and to 3% in 2023.
MNB raised its forecast for GDP growth this year to 6.2% from 4-6% in the March report. It puts GDP growth at 5.5% in 2022 and 3.5% in 2023.
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.