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Hungary rate-setters keep key rate on hold for seventh month in a row

The National Bank of Hungary's Monetary Council decided to keep the central bank's key rate on hold at 7.00% at a rate-setting meeting on Tuesday.

The decision to keep rates on hold – taken for the seventh month in a row – was in line with market expectations although some analysts did not rule out what they termed a "premature" rate cut.

The Monetary Council last changed the rate – raised it by 50 basis points – on December 21, 2011.

The Council discussed two proposals, one to keep the rate on hold an another for a 25bp rate cut, and the Council took the decision with a significant majority, MNB governor András Simor told a press conference held after the meeting.