Hungary leaves central bank base rate unchanged at 9½%

By Richard Connell

New York, March 23 - The Monetary Council of the Magyar Nemzeti Bank maintained its central bank base rate at 9½% at its meeting on Monday, according to a news release issued by the bank.

The council of the Hungarian central bank forecast that the risk of a deeper economic downturn has increased, with lowered external demand causing a reduction in exports and manufacturing.

The council also noted that investor confidence in Hungary and all of Eastern Europe has deteriorated, leading to a sharp depreciation of the forint.

Inflation has fallen to a level consistent with price stability, but the council warned that the weakened exchange rate has added risk to increased inflation.

In order to help preserve the stability of the financial intermediary system, the council voted to leave the base rate unchanged at 9½%.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.