Hungary’s central bank held the key interest rate at a record low for the fifth month in a row on Tuesday.
The Monetary Council of the Magyar Nemzeti Bank decided to hold the base rate unchanged at 1.35 percent. The decision was in line with economists’ expectations.
Capital Economics economist William Jackson said he expects the policy rate to remain unchanged at 1.35 percent well into 2017.
“We don’t expect additional interest rate cuts, but monetary conditions will remain extremely loose over the next couple of years,” he added.
Earlier this month, the Hungarian Central Statistical Office revised up its year-over-year GDP growth estimate for the third quarter to 2.4 percent from the initially estimated 2.3 percent expansion. This followed 2.7 percent growth in the second quarter. The pace of quarterly expansion was revised up to 0.6 percent.
Consumer prices increased for the second straight month in November, up 0.5 percent on year. Core consumer prices were up 1.1 percent.
The material has been provided by InstaForex Company – www.instaforex.com