The National Bank of Hungary’s Monetary Policy Council voted 6 to 4 to keep the two-week deposit rate unchanged at 8.50% at its June 23 policy meeting, the minutes of the meeting released Friday show.

Four members were in favor of increasing the rate by 25 basis points, the release said.

The central bank has raised interest rates by a total of 100 basis points since March in an effort to bring inflation close to its 3% mid-term target over the next five to eight quarters.

Members also agreed that the bank’s May inflation projection was surrounded by a high degree of uncertainty.

Several members noted that the disinflation process might falter due to further rises in international commodity prices and higher global inflationary pressures, which might lead to a deterioration in Hungary’s medium-term inflation outlook.

Source: http://www.djnewswires.com/eu

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