The Monetary Council of the National Bank of Hungary (NBH) decided at its monthly rate-setting meeting on Monday to leave the base rate unchanged at 8.00%.
The decision was in line with market expectations, though some investors had bet the bank would cut rates 25% to counter speculation it plans to scrap the forint's intervention band. The Monetary Council has left rates unchanged since October. Before that, the council raised the base rate at each of its rate-setting meetings since June 2006, increasing it 25bp on June 20, 50bp on July 25, 50bp on August 29, 50bp on September 25 and 25bp on October 24. Before the campaign of rate rises began, the rate had been unchanged at 6.00% since September 20, 2005. Monday's meeting was the first rate-setting meeting presided over by the new central bank president András Simor, who replaced Zsigmond Járai on March 3.