hungary cuts interest rate to record low ends easing cycle
Last Updated : GMT 02:36:20
Arab Today, arab today
Arab Today, arab today

Hungary cuts interest rate to record low, ends easing cycle

Arab Today, arab today

Arab Today, arab today Hungary cuts interest rate to record low, ends easing cycle

Hungarian Central Bank head Gyorgy Matolcsy
Budapest - AFP

Hungary's central bank on Tuesday cut its main interest rate to a record low of 1.35 percent from 1.5 percent, before calling an end to the second of two easing cycles since 2012.

The MNB cut the base rate for 24 consecutive months from August 2012 when the rate was seven percent, then again for five straight months from March this year.

Tuesday's 15-basis-point cut, slightly above most analysts' forecasts of 10 basis points, marked the end of the long easing policy, the MNB's rate-setting Monetary Council said in a statement.

"The policy rate has reached the level which ensures the medium-term achievement of the inflation target (of three percent) and a corresponding degree of support to the economy," the statement read.

Annual inflation in the non-eurozone EU member state was just 0.6 percent in June, after an eight-month period of negative inflation, which lasted until April.

In 2014, Hungary's GDP grew by 3.6 percent, while the IMF forecasts 2.7 percent growth this year. Meanwhile the European Commission, the EU's executive arm, has predicted just 0.8 percent annual inflation for Hungary in 2015.

"The inflation outlook and the cyclical position of the economy point to the direction of loose monetary conditions for an extended period," the Monetary Council said.

"This is it, we will not go further," MNB head Gyorgy Matolcsy confirmed, calling the new benchmark rate the "lowest in Hungary's economic history" and adding that the rates would be kept on hold for "a very long time".

In a bulletin after the rate cut, London-based analysts Capital Economics said that further rate cuts might have put the national currency the forint under pressure, and that no rate hikes were now expected in the short-term.

"The National Bank will come under little pressure to raise interest rates this year or next," the report said.

The forint jumped to a two-month high versus the euro after the announcement, trading at 307.98 to the euro late Tuesday, up from 310.02 late Monday.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

hungary cuts interest rate to record low ends easing cycle hungary cuts interest rate to record low ends easing cycle

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

hungary cuts interest rate to record low ends easing cycle hungary cuts interest rate to record low ends easing cycle

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today The Big Apple bike boom

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Leaders of Russia, Iran, Turkey meet

GMT 10:12 2017 Wednesday ,22 November

Leaders of Russia, Iran, Turkey meet
Arab Today, arab today 'Advanced' cyber attack targets Saudi Arabia

GMT 10:18 2017 Wednesday ,22 November

'Advanced' cyber attack targets Saudi Arabia
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Singer Jahda Wahba has unlimited ambitions

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 13:41 2017 Tuesday ,21 November

French choke up over proposal

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday