Hungarian Central Bank raised interest rates again

Xinhua News Agency, Budapest, July 27 (Reporter Chen Hao) The National Bank of Hungary (Central Bank) announced on the 27th that 100 basis points raised the benchmark interest rate from 9.75%to 10.75%. This is the first time that the country's benchmark interest rate has risen to more than 10%since December 2008.

The Hungarian National Bank Monetary Commission stated in a statement on the 26th that the Ukrainian crisis, the rebound of the new crown epidemic, the high commodity prices, and the continuous interruption of the supply chain increased the risk of global economic recession. Hungary will face long -term inflation pressure from the outside. If the short -term risk of the financial and commodity market risks risks, the central bank will continue to respond "quickly and flexibly" by adjusting interest rates.

This is the second interest rate hike this month. On July 12, the Central Bank of Hungary raised the benchmark interest rate to 200 basis points to avoid long -term inflation risks and stabilized prices.

This is also the 15th interest rate hike since June 2021. 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.

According to the official data of Hungary, the country's inflation rate reached 11.7%in June this year, far higher than the 3%target set by the Central Bank of Hungary. The Hungarian central bank expects that the country's average inflation rate will reach 11%to 12.6%this year.

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