Interest Rates Held Steady Amid Inflation Concerns
The Hungarian central bank has decided to maintain its benchmark interest rate at 6.5%, continuing its tight monetary policy to target a long-term CPI inflation rate of 3%. Despite ongoing uncertainties regarding inflation, the bank has pledged to make data-driven decisions at each policy meeting.
Gold Reserves May Be on the Rise
Central bank governor Varga mentioned that increasing the share of gold in foreign exchange reserves is under consideration. This strategic move reflects efforts to prepare for global economic volatility and strengthen the resilience of the nation's financial framework.
Currency Depreciation Helps Curb Import Prices
Varga also noted that the recent depreciation of the forint has helped limit the rise in import prices, offering some relief for domestic inflation control. However, managing exchange rate fluctuations while maintaining economic stability remains a key challenge.
- Continued tight monetary policy
- Potential increase in gold reserves
- Impact of currency movement on inflation