Hungary central bank leaves rates unchanged

As expected, the Hungarian Central Bank (MNB) left their base rate unchanged at +0.9% this morning.

It’s the 28th consecutive pause for the base rate in the current easing cycle.

Also, policy makers left the overnight deposit rate at -0.15%, as expected.

Yesterday, Hungary’s 10-year government bond yields rallied to its highest level since early July amid expectations that the central bank could tweak a swap tool that encourages banks to buy long-term bonds. 10’s backed up to +3.64%.

Inflation ran at +3.4% in August, above the mid-point of the bank’s +2-4% target range. Don’t expect the MNB to get worried unless the forint weakens significantly, lifting import prices.

The forint is trading up +0.28% at €324.00.

Governor Matolcsy is to hold his post-rate decision statement at 09:00 EDT

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.