Non-monetary Policy Meeting of the Monetary Council

At its April 8 meeting, the Monetary Council of the Hungarian National Bank (MNB) reviewed the latest international trade policy actions and their potential consequences. The Monetary Council concluded that uncertainty in the global economy and financial markets has increased substantially in recent days. Investor risk aversion is widespread, and both recessionary and inflationary risks have arisen in the global economy, MNB has said in a statement on its website.

Hungary’s economic fundamentals have improved in recent years, according to investors’ assessment. The country’s banking sector is stable: its capital position is strong and there is ample liquidity in the system. The announcements pose a risk of higher inflation, while the Bank’s first estimate suggests that a permanent change in tariff rules could hold back Hungarian economic growth by 0.5–0.6 percentage points.

The Monetary Council is committed to the achievement of the inflation target in a sustainable manner, and today’s situation assessment has confirmed the need for a continued tight monetary policy stance. The Bank can make the most effective contribution to the easing of economic agents’ increased precaution and to the restart of economic growth by achieving price stability and maintaining financial market stability. The Bank will maintain its stability-oriented monetary policy.