Households’ Savings Portfolio Allocation in an Inflationary Environment in the MNB’s New Quarterly Survey

Briglevics, Tamás and Hegedűs, Annamária (2023) Households’ Savings Portfolio Allocation in an Inflationary Environment in the MNB’s New Quarterly Survey. FINANCIAL AND ECONOMIC REVIEW, 22 (2). pp. 143-155. ISSN 2415-9271 (print); 2415–928X (online)

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Abstract

Using data from the new quarterly household survey of the Magyar Nemzeti Bank (the Central Bank of Hungary, MNB), we show how households’ saving habits changed between early 2022 and early 2023 as a result of higher inflation. Although savings plans changed considerably during the turbulent year 2022, the key difference is that households significantly increased their government bond holdings, mainly through inflation-linked, high-yielding government securities, at the expense of term deposits, showing that households with financial wealth are very sensitive to interest rates.

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