Monday, March 28, 2011

Hungary Central Bank Holds Policy Rate at 6.00%

The Magyar Nemzeti Bank maintained benchmark base rate unchanged at 6.00%. Hungary reported consumer price inflation of 4.1% in February, up slightly from 4.0% in January, and above the official inflation target of 3.0%. The Bank noted that "To reach the target, the current interest rate level may need to be sustained for an extended period,". The Bank also commented "If incoming data suggest a greater pass-through from the cost shocks, it may be necessary to tighten current monetary conditions in response to upside risks to inflation," in reference to commodity prices.

www.CentralBankNews.info

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