The Monetary Council of the National Bank of Hungary (MNB) decided to keep the bank’s key rate on hold at 8.50% at a rate-setting meeting on Monday. This was the fourth monthly rate-setting meeting in a row with no change in the rate.
The decision was in line with market expectations. In a Reuters poll of analysts conducted last week, all 19 respondents said the Council would leave rates on hold at the meeting. At its previous rate-setting meeting on August 25, 11 members of the Council voted to keep the base rate unchanged, and one member voted for a 26bp rate cut.
The base rate has been unchanged since May 27 after a combined 100bp increase between the end of March and the end of May. Before that, the last change -- a 25bp reduction - happened in September 2007. (MTI-Econews)