The council concluded: the central bank forecasts it meets the conditions in addition to the base rate’s current level and the central banks by converting available loose monetary conditions for the sustainable provision in line with the inflation target in the medium term by accessing and the real economy this is sufficient encouraging.
The monetary council, the three-month deposits for phase-in limit and that any future changes to the toolbar is an integral part of. The central bank remains the money market yield through to the loose monetary conditions are maintained and the economic growth can be encouraged. The council aspires to the three-month deposits for the introduced restriction effectively explain the expected impact, they added.
The monetary council’s view, the forecast period of recovery of the Hungarian economy’s growth. In the economy there are still unused capacities, but these emissions increase gradually cease to exist. This year economic growth in the budget and the EU resources for the investment recovery impact is also supported. The council in the following years steady 3-4 percent between the annual growth, which greatly contribute to the MNB and the government’s growth incentive programs.
In the following months, the beginning of the year base effects sails with continue the inflation decrease. The employment of dynamic expansion, the tight labour market and the end of last year wage agreements as a consequence of the national economic paid wages growth rate of recovery continued, that has a cost increasing effect is offset by the employer’s contribution reduction and the company profits tax rate reduction. All the retail consumption by increasing smaller part of the core inflation growth, a larger share in the trade surplus leads to a decrease in. The inflation in the members of the council according to 2018 from the first half of to reach sustainable price stability corresponding to 3 percentage.
The members of the council, it is considered that the Hungarian economic fundamentals and the inflation target sustainable achievement of the previous interest rate decisions since there was no development, which is the current base rate and the interest rate corridor the level of change to justify. Several council members mentioned that in the coming period, the base rate of a lasting posture with emphasis to invest in the central bank’s toolbox by converting it reaches loose monetary conditions durable to maintain. In addition, several board members stressed that the inflation basic processes have not changed, however, some council members noted that the received inflation indicators lag behind the expected, the wage increase effects and yet do not occur with the inflation in.
Established: the high external financing capacity and the external debt decrease in permanently to reduce the Hungarian economy’s vulnerability. The forward-looking domestic money market real interest rate in the recent years, decreased significantly and is expected to be for a long time in negative territory. The council’s assessment, according to the international financial environment regarding the evolution of uncertainty remains prudent monetary policy is appropriate.
The board’s next interest-fixing the meeting of may 23, which is on 7 June at 14 o’clock will publish an abbreviated protocol.
