The ECB changed its target

From July, the European Central Bank’s target will be a symmetric 2% target instead of the current inflation target of below 2%, but close to it. This allows the central bank to maintain lower interest rates in the longer term.

Aug 24, 2021

Macroeconomic data released in July typically showed growth, with weak base period data playing a large role in several cases:

The volume of industrial production in May was 39.1% higher than a year earlier, while compared to April, the growth rate was 3.4%.
In May, construction output grew 2.3%t month-on-month and 18.7% year-on-year.
Retail sales in the fifth month of the year were 5.8% higher than a year earlier, while they stagnated compared to April.

In June, inflation remained above the central bank target of 5.3%. Within this, the largest price increase was in spirits and tobacco products, but fuel prices also rose by more than 10%.

At its July meeting, the Monetary Council of the Magyar Nemzeti Bank tightened further, raising the base interest rate from 0.9% to 1.2%.

Please find the full report here ->

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The ECB changed its target

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