Analysis: the central bank base rate rose to 13%, the cycle of interest rate hikes is over
The central bank base rate rose to 13% more than expected from the previous 11.75%, the Monetary Council also raised the overnight deposit interest rate to 12.50% and the one-day and one-week secured loan interest rate to 15.50% . The MNB is also expected to raise the one-week deposit interest rate to 13% in Thursday’s tender.
Recently, the forint came close to its historical low against the euro, despite the fact that the pace and severity of interest rate hikes in the recent period shows a “commitment” against inflation that is almost unique in the world. Although the domestic real interest rate is still negative, in regional and international comparisons, its level shows a particularly restrained level. The exchange rate of the forint is currently not primarily driven by the interest rate, the evolution of gas prices plays a much more significant role, which significantly worsens the equilibrium and growth prospects, the strengthening of the dollar, global risk aversion and the uncertainties of the EU embargo and resource payment disputes.
Suppan Gergely/magyarbankholding.hu
Related news
Gebrüder Weiss Kft.’s HUF 10 billion investment in the future of logistics
Gebrüder Weiss Kft.’s new HUF 10 billion investment was handed…
Read more >2024 Q2 Investment Outlook: Timing matters
Positive momentum is building. The outlook for 2024 has brightened,…
Read more >K&H: we don’t have much time left to reach the 55 percent reduction
The Hungarian economy still has 6 years to reach the…
Read more >Related news
Grilling cheese didn’t go up in smoke
The average price of grilling cheese is much higher (nearly…
Read more >What do shoppers say about the new retail tools?
At the beginning of the year, Consumer Panel Hungary GfK–YouGov asked panel…
Read more >Special foods ranking: 1. Diabetic, 2. Low-carb, 3. Lactose-free
Different special diets and foods are frequently discussed, and it…
Read more >