The highlight next week will be the interest rate setting meeting of Magyar Nemzeti Bank (MNB) on Tuesday, but this week the Ministry of Finance (PM) will also present detailed cash flow data for the central government subsystem at the end. February.
Tuesday It holds its March meeting of the Central Bank’s monetary council. At its previous meeting in February, the committee did not change interest rate conditions in line with analysts’ expectations:
The base rate remains at 0.6%, the overnight interest rate is 1.85%, and the overnight deposit rate is minus 0.05%.
The Monetary Council changed the base rate for the last time in July, cutting it by 15 basis points. Prior to that, interest rates were also cut by 15 basis points in June, to 0.90 percent since May 25, 2016.
Also Tuesday Detailed information about PM is shown at Public Finance On the situation at the end of February. According to preliminary data released on March 8, as a result of measures taken so far and epidemic expenditures, the so-called central subsystem of general government, excluding local governments, closed the first two months of the year with a deficit of 539.7 billion HUF. From January to February, the central budget recorded a deficit of 505.5 billion HUF, the Social Security funds recorded a deficit of 47.6 billion HUF, and the separate government funds recorded a surplus of 13.4 billion HUF. In January, the central subsystem closed with a surplus of 198.8 billion HUF, with the deficit in February amounting to 738.5 billion HUF.
In the first two months of last year, the deficit in the central subsystem amounted to 254.6 billion HUF.
The prime minister’s statement confirmed that the resources allocated to epidemiological and economic protection were fully provided from last year’s budget, which is also the reason behind the performance of the Hungarian economy above the average of the European Union in 2020. He said that the necessary resources for defense, purchasing vaccines and reactivating the economy are still available in budget.
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