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Central Bank leaves base rate unchanged

The Monetary Council of the Hungarian Central Bank (MNB) did not discuss rates at its non-rate-setting meeting on Monday, the Council said.

The Council discussed economic and financial developments at the meeting. Interest rates were not on the agenda and were not discussed at the meeting, the Council said in a brief statement.

London-based emerging market analysts did not exclude the possibility of another extraordinary rate cut, saying the Monetary Council wants to cut back the 300bp extraordinary rate rise made at the end of October as soon as possible. The 300bp rate rise, to 11.50%, was carried out on October 22 to make an attack on the forint more costly for speculative investors.

The MNB has reduced the key rate three times since, cutting it 50bp at each of its meetings, including one non-rate setting meeting on December 8, since the end of November.

Currently the rate is 10.00%. (MTI – Econews)