MNB cuts inflation forecast to 0.3% for 2016

Analysis

The National Bank of Hungary (MNB) today cut its inflation forecast to 0.3% in 2016 in its March Inflation Report, a reduction from the 1.7% inflation rate it predicted in its earlier Inflation Report in December 2015, Hungarian news agency MTI reported.

The MNB slightly lowered the inflation data for 2015 to -0.1% from the 0.0% in the December report. For 2017, MNB only expects 2.4% inflation instead of the previous prediction of 2.6%.

According the report, the inflation goal of the central bank is still 3%, with the tolerance band at 4% and 2% respectively.

Economic growth in 2015 was at 2.9%, 0.1 percentage points lower than in the December Inflation Report.

GDP could grow by 2.8% in 2016, 0.3 percentage points higher than the previous estimate. Growth could accelerate to 3% in 2017 according to the report, in line with the MNBʼs earlier prediction in December.

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