The government majority has passed the country’s annual budget amidst widespread criticism from the political opposition and numerous doubts voiced by market analysts. The plans predict that 2024 will see a significant rebound from the depths of the current year; however, concerns abound that structural issues dragging over from 2023 will weigh heavily, and the government appears to have made its calculations through rose-tinted glasses, according to its critics.
The beginning of the summer brought good news and bad. While sky-rocketing inflation finally seems to be slowing down visibly, industrial production broke a three-year negative record. The weak performance may increase the risk of an ongoing recession.
The National Bank of Hungary (MNB) started to reduce the one-day deposit tender interest rate at its latest rate-setters’ meeting. The move came as no surprise; the base rate, however, will remain at its current 13% level for a more extended period, according to central bank governor György Matolcsy.