Rate Outlook Clouded

January 2007
Emerging Europe Monitor: Central Europe & Baltic States;Jan2007, Vol. 14 Issue 1, p3
Country Report
Country Report
The article analyzes trends in inflation and interest rates in Hungary. The decision by the National Bank of Hungary to keep interest rates at 8.00% in November 2006 was partly due to a stronger exchange rate and lower oil prices. Further rate increases should be ahead given the bank's 2008 average inflation projection of 4.1%, well above its 3% target. However, a forthcoming slowdown in domestic demand could lower the inflationary pressures in the country.


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