The NBH confirms its happiness with the current set-up
The National Bank of Hungary left base rate unchanged at 2.1% in line with market expectations. EURHUF didn’t react on the decision. The Monetary Council emphasized in the statement that they don’t see inflationary pressure in the economy and CPI may achieve the 3% inflation target at the end of the forecasted horizon. The low CPI is because of the unused capacity utilization, the low wage dynamic and the public utility cost reduction. Also the low imported inflation and the decreasing inflationary expectations of the households keep CPI at a low level.
Read the full report: FX Daily