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National Bank of Hungary leaves rates on hold

The Monetary Council of the National Bank of Hungary voted to keep the central bank's key rate on hold at 6.00% at a meeting on Tuesday, the MNB said.

Council members kept the rate on hold for the eight month in a row.

The decision was in line with market expectations, though some analysts had said a sharp weakening of the forint in recent days could prompt a rate rise.

The forint firmed from 291.50 to 290.50 to the euro immediately after the decision was announced.

Speaking at a press conference after the meeting, MNB governor András Simor said two proposals were made at the meeting: one to keep the base rate on hold and the other to raise it by 25bp. The first proposal got an "overwhelming majority" of the vote, he added.