“Central Bank to Keep High Interest Rates in Place”


Monetary policy must remain stringent until risks decline across the board, and so the 13% base rate and the 18% overnight rate will remain in place in the longer term, Barnabás Virág, deputy governor of the National Bank of Hungary (NBH), told a conference on Wednesday.


Virág told Aegon Asset Management’s Expectations in 2023 conference that Hungary’s economy had managed to “avoid grave scenarios” and growth remained above European Union average, while the economy has begun to adapt to changes in the energy market. Whereas price stability remains a priority, besides inflation, the current account will continue to be an important indicator. The current account balance has deteriorated this year due to rising energy costs, he noted.





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