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Hungary: Monetary Council raises base rate 50bp to 8.0%

The Monetary council of the National Bank of Hungary (MNB) decided at a meeting on Monday to raise the central bank base rate by 50bp to 8.00%.

Before the meeting, analysts were divided over whether the bank would raise rates 25bp of 50bp. At the previous rate-setting meeting on February 25, four members voted for a 25bp rate rise and eight members voted to keep rates on hold. The council also voted to abolish the forint’s intervention band. The central bank base rate has been at its current level of 7.50% since September 25, 2007.The forint traded at 259.34 per euro by 2:20 p.m. in Budapest, after earlier dropping to 260.97, from 257.06 March 28. (MTI-Econews)