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Central bank cuts base rate 25bp to 5.75%, in line with expectations

The National Bank of Hungary's Monetary Council decided to reduce the base rate by 25bp to 5.75% - a historical low - at a meeting on Monday.

The cut was in line with expectations, in light of inflation prospects, global appetite for risk and financial stability.

At a meeting of the Council a month earlier, rate-setters said subdued demand and inflation prospects made room for further rate cuts, but most members believed developments on global financial markets still limited the pace of cuts, the condensed minutes of the meeting showed.

The MNB has reduced rates by a combined 375bp at each of its monthly meetings since July. (MTI-Econews)