Economy

Monetary council reduced central bank base rate to 2.4 percent

At its meeting on 27 May, the monetary council of the National Bank of Hungary (MNB) reduced the central bank base rate by 10 basis points to 2.4 percent, a further historic low, according to the council the uncertainty related to the changes in the international financial environment justifies cautious monetary policy.

According to the explanation of MNB, in addition to the improvement of the risk assessment of Hungary, the careful reduction of the base rate was possible. According to the recent justification published on the web page of the central bank, the monetary council will decide about continuing the interest rate reduction cycle on the basis of the comprehensive evaluation of the macro-economic prospects and the changes in risk assessment, in knowledge of the basic path and risk scenarios of the June inflation report.

Photo: hetivalasz.hu