MNB lowers inflation forecast to 2.4% for 2017


The National Bank of Hungary (MNB) lowered its inflation forecast for 2017 to 2.4% in its quarterly Inflation Report released on Tuesday, down from 2.6% in the previous report published in March, Hungarian news agency MTI reported.

The MNB also lowered its 3% inflation forecast for 2018 to 2.8%, but kept its 3% forecast for 2019 unchanged.

The MNB is predicting 3.6% GDP growth this year, unchanged compared to its earlier forecast. The 3.7% economic growth expected for next year is also in line with earlier projections, as is the 3.2% GDP growth forecast for 2019.

The central bank will publish the full Inflation Report tomorrow.

MNB noted that for 2016 it is expecting the Central Statistical Office (KSH) to revise its GDP growth figure of 2% upwards to 2.2%. The MNB issued a similar notice in the March Inflation Report.

A fan chart published yesterday indicates that the MNB expects inflation to reach the 3% target in early 2019. In March, the fan chart showed inflation reaching the threshold early in 2018.

The MNB puts the inflation target in a +/-1% tolerance band.

The Hungarian government forecasts GDP growth to accelerate to 4.1% this year and to 4.3% next year, while it expects inflation to be 1.6% in 2017 and 3% in 2018 based on its projection in an update of the countryʼs Convergence Program.


European e-commerce soars during pandemic - study Analysis

European e-commerce soars during pandemic - study

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Chain Bridge to be closed for traffic for 18 months City

Chain Bridge to be closed for traffic for 18 months


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.