The National Bank of Hungary (NBH) will probably raise its current 3.0% mid-term inflation target today, Vice Governor and monetary policy council member Mr Péter Adamecz told Reuters on Friday. He added that the main causes of higher-than-expected inflation this year were a rise in food, vegetable, and oil prices, and weakening of the Hungarian forint.
We believe that a higher mid-term inflation target could place some upward pressure on the base rate. Nonetheless, for today’s MPC meeting, consensus expects the base rate to be left unchanged at 6.0%.