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Hungary Flags Downside CPI Risks After Keeping Rates Unchanged

  • Central bank sees global economy restraining price growth
  • Rate-setters to comprehensively review policy at Sept. meeting
National Bank Of Hungary Rates Decision Briefing
Photographer: Akos Stiller/Bloomberg
Updated on

Hungary’s central bank said downside risks to the long-term inflation outlook have strengthened before a scheduled comprehensive policy review next month, a signal that policy makers may be ready to forgo further tightening and may consider the need for easing.

The monetary authority looked past the weakest forint in a year to keep borrowing costs near zero on Tuesday, as rate-setters awaited action from the euro area before their September meeting, when Hungary’s central bank will publish updated inflation forecasts.