Hungary’s central bank has said inflation is likely to be higher in 2019 and the following two years than its earlier forecast. In a preliminary release of the main forecasts from its quarterly Inflation Report due on Thursday, the National Bank of Hungary raised its forecasts by 0.1 of a percentage point to 3.2% this year and by 0.3pp to 3.4% in 2020 and by 0.3pp to 3.3% in 2021. The bank’s last Inflation Report was released in March. It confirmed inflation was 2.8% in 2018.
Rate-setters kept the 0.90% base rate on hold at their monthly policy meeting and the central bank O/N deposit rate at -0.05%.