Hungarian Central Bank announced a sharp interest rate hike again

Xinhua News Agency, Budapest, August 30 (Reporter Chen Hao) The State Council of the State Bank of Hungary (Central Bank) Monetary Commission announced on the 30th that the country's benchmark interest rate was raised from 10.75%to 11.75%.

The Hungarian Central Bank Monetary Commission issued a statement on the same day that the Russian -Ukraine conflict, the new crown epidemic, high prices, and interruption of supply chain have exacerbated the risk of global economic recession. In the next few months, the pressure on the external inflation of Hungary will continue to increase. Hungary is needed to maintain austerity policy for a long time to cope with the risk of inflation due to insufficient supply. According to the statement, Hungary's overnight deposit interest rates and overnight loan interest rates raised 100 basis points to 11.25%and 14.25%, respectively.

Vice President of the Central Bank of Hungary, Verag Powau Bash, said at a press conference on the 30th that Hungary's inflation rate may continue to rise in the next few months, and the inflation rate may reach 15%to 16%in August. Therefore, it is necessary to further further further Adopt a tightening policy.

This is the 16th rate hike since June last year. On June 22, 2021, the Central Bank of Hungary increased the benchmark interest rate to 30 basis points to 0.9%, opening a new round of interest rate hike. On July 12th and 27th this year, the Central Bank of Hungarians raised the benchmark interest rates to 200 basis and 100 basis points.

The latest data released by Hungary on the 9th of this month shows that the country's inflation rate in July reached 13.7%, which is much higher than the 3%target set by the Central Bank of Hungary.

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