Latest news with #MihalyVarga
Bloomberg
15-06-2025
- Business
- Bloomberg
Hungary Nominates Palotai as Central Bank Deputy Governor
Hungary nominated Daniel Palotai to become the fourth deputy governor of the central bank, a position created this month after Parliament passed an overhaul of the institution's leadership. A parliamentary committee hearing will be held on Monday to confirm the nominee, put forth by Prime Minister Viktor Orban. The fourth deputy governor will be tasked with issues relating to developments in international economy in a unified portfolio, Governor Mihaly Varga said in May.
Reuters
23-05-2025
- Business
- Reuters
Hungarian central bank to leave base rate steady again, eyeing CPI risks: Reuters poll
BUDAPEST, May 23 (Reuters) - Hungary's central bank will keep interest rates unchanged again next Tuesday, according to a Reuters poll that expects hardly any loosening in monetary policy through to the end of 2025, due to inflation risks. All 14 analysts surveyed between May 19 and 23 said the base rate would stay at 6.5% for the 8th straight month at the May 27 policy meeting as the National Bank of Hungary tries to cut inflation with an economic recovery much weaker than expected. The poll's median projection is for the base rate to inch down to 6.25% by the end of 2025. On Thursday, Hungary's central bank governor, Mihaly Varga, said inflation expectations must be anchored in order for the bank to reach its inflation target in a sustainable manner, adding the fight against inflation is "not yet over". The central bank left its benchmark base rate steady in a unanimous decision in April and said a careful and patient approach to monetary policy was still needed. Hungarian inflation exceeded 5% in the first two months of the year before retreating to 4.8% in March and 4.2% in April. "We expect the NBH to keep its base rate unchanged at 6.50% at its upcoming meeting on May 27 and to retain its cautious forward guidance for the key policy rate to remain at its current level for a prolonged period of time," Morgan Stanley economist Georgi Deyanov said in a note. "We expect the central bank to acknowledge the improving inflation outlook but continue highlighting elevated risks to it and to hint at potential downside revisions to both its GDP and inflation forecasts at the subsequent June core meeting." New governor Varga, Prime Minister Viktor Orban's former finance minister, has ruled out rate cuts for the foreseeable future despite the poor GDP growth outlook. The poll sees Hungary's economy growing by only 1% this year, below the central bank's latest forecast for 1.9% to 2.9% published in March. Standard & Poor's cut Hungary's credit rating outlook to negative from stable last month. Two other rating agencies, Moody's and Fitch, are both expected to review their assessment of Hungary's credit standing in the coming weeks.
Bloomberg
25-04-2025
- Business
- Bloomberg
Hungary Central Bank Alleges Fraud at Its Foundation, Index Says
The new management of the Hungarian central bank's foundation, appointed by recently installed Governor Mihaly Varga, has pressed charges on suspected fraud and misappropriation under the previous leadership, Index reported, citing people familiar with the matter it didn't name. The charges relate in part to a Feb. 28 attempt — days before the end of previous Governor Gyorgy Matolcsy's second term — to transfer control of the foundation's assets to an entity outside its control, the news website said on Friday. The central bank declined to comment.
Yahoo
25-03-2025
- Business
- Yahoo
Hungary Holds Key Rate With Focus Shifting to Varga's Guidance
(Bloomberg) -- Hungary held interest rates at the first policy meeting under Governor Mihaly Varga, with attention now shifting to the central bank's monetary-policy guidance. They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Why Did the Government Declare War on My Adorable Tiny Truck? Chicago Transit Faces 'Doomsday Scenario,' Regional Agency Says LA Faces $1 Billion Budget Hole, Warns of Thousands of Layoffs Trump Slashed International Aid. Geneva Is Feeling the Impact. The National Bank of Hungary kept the benchmark rate unchanged at 6.5% on Tuesday, tied with Romania for the highest key interest rate in the European Union. The decision matched the estimate of all but one economist in a Bloomberg survey. Varga will speak an hour later, when new inflation forecasts will also be published. Annual price growth soared to a 15-month high of 5.6% in February, bolstering bets that little to no room remained for monetary easing this year. Even before Varga took over, the central bank said it planned to hike its inflation projections as soaring services and food costs lifted price-growth further away from policymakers' 3% goal. Inflation has become a political headache for Prime Minister Viktor Orban, whose party is trailing an upstart opposition movement with a year to go before the next elections and with campaigning dominated by an ongoing cost-of-living crisis. The government last week instituted a curb on retailers' profit on some 30 food staples to stem inflation. The average price of affected products dropped by almost 18% on average since the intervention started, Economy Minister Marton Nagy said Tuesday. Varga, who was Orban's longtime finance minister, took over the central bank this month, vowing to prioritize price stability and to maintain tight monetary policy. The central bank has kept the key rate unchanged for the past five months. Money market traders see only a slight chance of an interest rate cut this year, according to forward rate agreements. They have even started wagering on a rate hike in the next three months. The hawkish monetary-policy rhetoric has helped support the forint, which has gained 3.5% against the euro this year, the biggest appreciation among emerging market peers after the Russian ruble. Policymakers have previously cited currency weakness as another risk factor for inflation, given the heightened pass-through for prices. Google Is Searching for an Answer to ChatGPT The Richest Americans Kept the Economy Booming. What Happens When They Stop Spending? A New 'China Shock' Is Destroying Jobs Around the World How TD Became America's Most Convenient Bank for Money Launderers Tesla's Gamble on MAGA Customers Won't Work ©2025 Bloomberg L.P. Sign in to access your portfolio
Bloomberg
11-03-2025
- Business
- Bloomberg
Hungary's Inflation Problem Worsens in Central Bank Challenge
Hungary's inflation unexpectedly continued to accelerate for a fifth month, reinforcing new central bank Governor Mihaly Varga's bias against rushing monetary easing. Consumer prices rose an annual 5.6% in February, the fastest pace in 15 months, according to data published by the Budapest-based statistics office on Tuesday. The median estimate of 20 economists was 5.3%. Month-on-month, prices rose 0.8%.
