The decision of MNB on the interest rate

The monetary conditions were left untouched by the Monetary Council of MNB on Tuesday, consequently, 0,6 % remains the base interest rate. Based on this, it is expected that the same fate awaits the reference interest rate on Thursday. Supposedly, this is was the last such occasion and, after almost ten years, a rise in interest rate could be expected in as soon as June.

The.vise-president of MNB, Barnabás Virág suggested the idea that a raise in interest could occur in June. The expected reactions of the Central Bank to the risks of inflation, according to experts, may include bringing the 0,6% base interest rate and the 0,75% one week reference interest rate to one (preferably higher) level.

As expected, the conditions are left as they are by the central bank for the time being.

The most recent change in interest rate was made in 2011 when it was raised from 6,75% to 7%. For the first time in nine and a half years an aggravation regarding interest rate was made.

The meeting of June is of utmost importance since besides the previously mentioned change, the inflation report of the central bank will be discussed, from which the reason for the raise in interest rate will be revealed and also how the Monetary Councils expectation will differ from the on in March.