Hungarian Central Bank raised a sharp interest rate of 125 basis points

Xinhua News Agency, Budapest, September 27 (Reporter Chen Hao) The State Bank of Hungary (Central Bank) Monetary Commission announced on the 27th that it raised the benchmark interest rate from 11.75%to 13%. Essence

The Hungarian Central Bank Monetary Commission stated in a statement on the 27th that because the interest rate conditions have been strict enough, the central bank decided to end this round of interest rate hikes and turn focus on tightening liquidity and further strengthening monetary transmission.

Hungarian Central Bank President Maorotch Gars said at a press conference that the end of the rate hike cycle did not mean the end of the inflation. The central bank will continue to tighten monetary policy with other tools. He also said that Hungarian inflation will continue to rise this year, and it is expected to see the top in the first half of next year, and then slowly decline, and approaching the central bank's goals in 2024.

Hungarian Central Bank's this round of interest rate hikes began in June 2021. In this round of interest rate hikes, the Central Bank of Hungary Reluted a total of 17 times, raising the benchmark interest rate from 0.6%to 13%.

The latest data released by Hungary on the 8th of this month shows that the country's inflation rate in August reached 15.6%, which is much higher than the 3%target set by the Central Bank of Hungary.

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