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Monetary Council cuts base rate by 100bp

The monetary council of the National Bank of Hungary (MNB) cut the central bank base rate by 100 basis points (bp) to 8.50% at a rate-setting meeting.

Most on the market expected a 50 bp cut.

The cut is the first rate change since a 50 bp cut in January. The bank cut the key rate 200 bp between November and January, reversing much of a 300 bp emergency rate rise in October.

At the preceding rate-setting meeting on June 22, council members voted 6:3 to keep rates on hold at 9.50% as against another proposal for a 50 bp cut. (MTI – Econews)