Hungarian Central Bank Holds Key Rate As Expected

(RTTNews) - Hungary's central bank on Tuesday kept its base rate unchanged at 6 percent for the seventh time in a row. The decision was in line with economists' expectations.

In July also the Magyar Nemzeti Bank left the two-week deposit rate unchanged after policymakers assessed that maintaining the rate would help to ensure that inflation returned to the 3 percent target. The July decision was unanimously passed by the Monetary Council.


Inflation in Hungary eased to 3.1 percent in July from 3.5 percent in June, and remained slightly above the central bank's medium-term target of 3 percent. Lower food prices contributed significantly to the fall in inflation.

Hungary's economy expanded at a notably slower pace in the second quarter. The annual rate of growth slowed to 1.5 percent from 2.5 percent in the first quarter.

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