The rate rise was widely expected, after the Monetary Council said two weeks earlier it planned to gradually increase rates to bring inflation in line with its midterm target of 3% by 2008. The council last raised the base rate by 25bp to 6.25% on June 19.
The forint firmed to 276.70/90 after the announcement at 2 pm. The forint was trading at 278.60/80 to the euro around noon. On the secondary market for government securities, yields rose a further 7-8 bp after increasing 5-7bp in the morning.
Traders said most market movers had expected a 25 bp rate rise at the meeting.