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NBH leaves base rate on hold

December 17th, 2019

Rate-setters of the National Bank of Hungary left the base rate unchanged at 0.90 percent and the central bank O/N deposit rate at -0.05 percent at a regular meeting on Tuesday. The Monetary Council has not changed the base rate since May 2016, though it has tweaked monetary policy on a quarterly basis, coinciding with the publication of the central bank's Inflation Report. The NBH will publish its latest Inflation Report on Thursday, but it released the main forecasts from the report on Tuesday. The NBH raised the forecast for 2020 headline inflation to 3.5 percent from 3.4 percent in the previous Inflation Report. But it left the forecasts for 2019 and 2021 unchanged, both at 3.3 percent.


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