Hungary Holds Rate Unchanged as Expected âšī¸
The central bank of Hungary maintained its base rate unchanged at 6.5% for the third straight decision, as domestic industrial activity has slowed, driving the Hungarian GDP to contract annually in the third quarter, while inflation is expected to increase past its tolerance band in early 2025 before starting the disinflation process.
The article indicates that the Hungarian central bank has maintained its base rate unchanged, which is a neutral development for the investment portfolio. While the article mentions a slowdown in domestic industrial activity and GDP contraction, as well as an expected increase in inflation, the central bank's decision to keep rates unchanged suggests that the impact on the portfolio is likely to be limited. The portfolio's exposure to the Hungarian market and broader European markets is relatively small, so the neutral impact assessment is reasonable.