K&H: 2% inflation expected; beware of bonds

Analysis

The trend of depressed prices in Hungary will reverse by the end of the year, and inflation will reach 1.5-2%, according to projections published by K&H today.

Analysts at K&H said the central bank's cut in the base lending rate this week significantly affects the market for savings in Hungary, so that, together with expected inflation, investors might face negative real interest rates.

“We suggest investors seek protected funds over bond investments, to reach higher yields while preserving the principle invested, even in the case of an unexpected drop in interest rates,” said István Horváth, the managing director of funds for K&H.

ADVERTISEMENT

Bulgaria jobless rate falls to record low in August Figures

Bulgaria jobless rate falls to record low in August

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

Budapest leaders make public transport free for under-14s City

Budapest leaders make public transport free for under-14s

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.