Central banker envisions further hikes to forint base rate
Hungary's central bank may be forced to raise interest rates due to risks to its inflation target, deputy governor Ferenc Karvalits told Reuters.
“However, everybody should keep in mind that substantial tightening has happened already and its impacts unfold with a time lag,” he said, referring to three rate hikes totaling 100 basis points in the past three months which have brought the key base rate to 8.5%.
Karvalits was speaking after May twelve-month inflation, published on Wednesday morning, came to 7.0%, rising from 6.6% in April, up from analysts' expectation for no change or a minimal rise. Karvalits said that the figure slightly exceeded not the bank's expectations too.
The National Bank of Hungary (MNB) will hold its next rate-setting meeting on June 23. (MTI – Econews)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.