MNB to stick with slower pace of tightening

Hungary’s central bank (MNB) slowed the pace of its tightening cycle today, raising its base rate by a smaller-than-expected 15bp to 1.65%, and the post-meeting communications signalled that future rate hikes will remain at the smaller end of the spectrum. We have tweaked our interest rate forecasts and now expect the base rate to rise to 2.10% by the end of this year (previously 2.20%).
Jason Tuvey Senior Emerging Markets Economist
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CE Spotlight 2021: The Rebirth Of Inflation? We’re holding a week of online events from 27th September to accompany our special research series. Event details and registration here.

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