“In assessing the effects of incoming data on the outlook for inflation, the Monetary Council would adjust monetary conditions as a series of individual decisions from quarter to quarter,” say the minutes, summarized by state news agency MTI.

So far this year, the Councilʼs policy adjustments have coincided with the release of the central bankʼs quarterly Inflation Report, in March, June and September.

At the meeting in September, policy-makers set the amount of liquidity to be crowded out from central bank instruments in the fourth quarter at “at least” HUF 300-500 billion, up from HUF 200-400 bln in the previous quarter. The rate-setters take the level into account when setting the stock of MNB swap instruments, one of the central bankʼs main policy tools.

Council members confirmed in the minutes that downside risks to persistent inflationary trends were now stronger than upside risks, and “agreed that fine-tuning of monetary conditions was warranted,” the minutes show. 

The members also acknowledged that the current environment is “uncertain” and justifies “a cautious approach.”

The minutes show the Council voted unanimously to keep the central bank O/N deposit rate at -0.05%, and the base rate at 0.90%, at the policy meeting on September 24.