The National Bank of Hungary (MNB) left its 6% benchmark interest rate unchanged for a sixth month at its Monday meeting.The MNB indicated that rising global interest rates make an increase more likely. Járai said in a March 8 interview the bank may be forced to raise the rate for the first time in more than two years as the size of the budget deficit pushes the economy close to a “heart attack.”
“Signs of monetary tightening have become dominant in developed countries,” the bank said in its statement today. “This, through the deterioration of global risk appetite put pressure on emerging markets. The increasingly tangible risks amplify the need for budget deficit reduction” in Hungary.