Template-Type: ReDIF-Article 1.0
Author-Name: Annamária Madarász
Author-Name: Zsuzsanna Novák
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: madarasza@mnb.hu
Author-email: novakzs@mnb.hu
Title: Level of interest rates in the light of the
changing interest rate policy in Hungary
between 1924 and 2015 – How did the central
bank base rate get to its historic low levels?
Abstract: This paper examines Hungary’s interest rate policy between 1924 and 2015 with
special regard to the role and effects of the central bank base rate. It introduces
the changes in the economic environment – with special focus on inflation –
characterising the period, and takes account of the main steps relating to the
interest rate policy and central bank instruments used since the foundation of the
Magyar Nemzeti Bank in 1924, within the framework of the monetary policy of
the given period, differentiating three separate eras. The aim of the paper is to
point out how central bank interest rates gained greater and greater importance
in the anti-inflationary policy of the central bank on the basis of interest rate
policy analysis in an adequate conceptual framework and to historically place the
1.35 per cent base rate level currently in effect since the end of the interest rate
reduction cycle, which was commenced by the central bank in August 2012.
Classification-JEL: E40, E42, E52
Keywords: monetary policy, interest rate policy, historic interest rate
Journal: Financial and Economic Review  
Pages: 87–109
Volume: 14
Issue: 4
Year: 2015
File-URL: http://english.hitelintezetiszemle.hu/letoltes/4-madarasz-novak-en.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:14:y:2015:i:4:p:87-109