Hungary's Monetary Policy Left Unchanged
The Magyar Nemzeti Bank retained a 9.5% benchmark rate as expected. Typical of other European economies, GDP growth has tumbled (-3.9% at a seasonally adjusted annual rate in 4Q08), and inflation has declined appreciably from 6.7% in in the year to March 2008 to an in-target 2.9% in the year to March 2009. However, the Hungarian forint depreciated some 28% over the past twelve months, and officials are reluctant to expose the currency to more selling pressure. A statement was released that warned of more pronounced import price inflation associated with exchange rate losses.
To secure an IMF-engineered loan package, the central bank raised its key rate by 300 basis points last October 22nd but subsequently cut such by 50 basis points each on November 24, December 8, December 22, and January 19. That was the last time monetary policy was changed.
WE RECOMMEND THE VIDEO: Forex News: 21/10/2020 - Stimulus deal moves closer; stocks cheer but dollar sags
Risk Warning: 77.19% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high ...
Copyright 2009 Larry Greenberg. All rights reserved. No secondary distribution without express permission.
This entry was posted on Monday, April 20th, 2009 at 12:47 pm and is filed under Central Bank Watch. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
Comments are closed.
Currency Thoughts has evolved from a blog to a full-functioning website. This new design provides easier access to your favorite features and new capabilities to accept ads. In the future, it will be possible to register to accept emailed updates.