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National Bank of Hungary leaves rates on hold, as expected

The National Bank of Hungary's Monetary Council decided to leave the base rate on hold at 5.25% at a meeting on Monday. The decision was in line with market expectations.

The Council also voted to keep rates on hold at a meeting a month earlier, the first pause in a campaign of rate cuts started last July that shaved 425 bp of the key rate to bring it to a record low.

“Monetary Council members agreed that there had been a deterioration in the outlook for inflation and perceptions of risks associated with the economy compared with the positive developments in the previous period, reducing the scope for easing monetary policy,” the condensed minutes of the meeting on May 31 show. “Interest rates might only be reduced further if the outlook for inflation and perceptions of risks improved,” the Council said. (MTI – Econews)