Hungary's Inflation Challenge

Hungary faces economic challenges with a high central bank policy rate and calls for interest rate cuts amid a recession. The country struggles with inflation, energy import costs from Russia, and a weakened currency. EU funding is frozen due to alleged rights violations, complicating policy decisions as Hungary negotiates access to 37 billion euros. The next policy decision is expected on April 25th.

What is the central bank policy rate in Hungary?

• 25%

• 20%

• 18%

• 15%

Why is the Hungarian government advocating for interest rate cuts?

• To strengthen the currency

• To decrease exports

• To stimulate the economy

• To increase inflation

What is one of the geopolitical challenges Hungary is facing?

• Dependence on energy imports from China

• Dependence on energy imports from Russia

• Dependence on energy imports from the USA

• Dependence on energy imports from Germany

What has caused the weakening of Hungary's currency?

• Decreased imports

• Increased exports

• Low inflation

• High energy bills

Why are EU funds currently frozen for Hungary?

• Due to alleged violations of EU rights

• Due to economic instability

• Due to currency devaluation

• Due to high inflation