MNB raises 2005, slashes 2006 inflation forecasts
Hungary's central bank MNB has slightly raised its inflation forecasts for 2005, while at the same time significantly reducing its forecast for 2006, following announced VAT reduction plans by the government, as well as favorable core inflationary developments in the past months.
Transport of goods up 10% in H1 - passenger transport also on the rise
Hungary's transport sector saw an increase of 10.2% in the overall volume of shipped goods in the first half of 2005, according to Central Statistical Office (KSH) figures.
MNB, government set 3% medium-term inflation target
The Monetary Council of central bank MNB, in cooperation with the government, made a decision to change Hungary's system of inflation targeting, whereby the two bodies will set medium-term inflation targets for the period starting 2007, as opposed to the current practice of setting year-end targets.
Monetary Council enacts surprise 50 bp cut in base rate to 6.25%
Effective Tuesday, the Monetary Council of central bank MNB reduced the base rate by 50 basis points to 6.25% at its Monday meeting. The move came as a surprise as most analysts had predicted a rate cut of just 25 bp, although fixed income yields appeared to have priced in a steeper reduction in the base rate.
Unemployment stagnates at 7.1% in May--July
Hungary's unemployment rate was 7.1% in the period May-July 2005, according to figures released by the Central Statistical Office (KSH). This is unchanged from the previous three-month period and is also in line with the average for the year to date.
