The Hungarian central bank raised interest rates by 50 basis points to 3.4%, as expected, as consumer prices rose at the fastest pace in 15 years in January, with rising Ukraine-Russia tensions fueling market uncertainty. .
In a poll released this week, 11 out of 15 analysts expected the key interest rate to rise by 50 basis points to 3.4%, while three analysts forecast an increase of 60 basis points and one analyst expected an increase of 70 basis points to 3.6 %.
Average estimates expect the key interest rate to rise to 5.28% by the end of 2022 as the bank seeks to curb inflation at a time when businesses are re-pricing goods and services to offset rising costs for materials and wages. .
“We observed a sharp acceleration of the underlying inflation throughout the region in January,” Commerzbank said in a note.
“It is now up to the central banks to redefine their own reaction function and prove that they can act more aggressively when the secondary effects become stronger.”
The deputy governor of the central bank stressed last week that the risks to inflation had increased.
He stressed that the bank will raise interest rates until it sees that “it has won the battle of inflation.”
Inflation in January stood at 7.9%, the highest level since August 2007.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
