The November 2003 issue of the Quarterly Report on Inflation, discussed and approved by the Monetary Council, is accessible on the MNB's website. The Council is issuing its assessment related to the Report in a separate press release.
At its meeting on 17 November 2003, the Monetary Council considered the latest economic and financial developments and left the central bank base rate unchanged at 9.50%. In the Council's view, the 4% inflation target set for end-2005 can be met if economic fundamentals improve as expected and the exchange rate stays in the range of HUF/EUR 250 to 260. However, the Council does not intend to tighten monetary conditions in order to counterbalance the one-off price increasing effects of the tax measures to be implemented in 2004, as it maintains that these measures will not put the inflation target at risk. The Council therefore has not changed the central bank base rate.