Hungarian Central Bank Lowers Key Policy Rate As Expected

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The Hungarian central bank reduced its key interest rate by 50 basis points on Monday.

The Monetary Council of the Magyar Nemzeti Bank slashed the base rate to 8% from 8.5%, with effect from August 25. The rate cut came in line with economists' expectations. In July, the bank had lowered the interest rate by 100 basis points from 9.5%.

Meanwhile, the new overnight central bank deposit rate is 7.50%% and overnight collateralised loan rate is 8.5%

Hungarian gross domestic product fell to a record low in the second quarter. The GDP dropped 7.6% year-on-year in the second quarter, compared with a 6.7% fall in the previous quarter.

The consumer price index or CPI rose 5.1% year-over-year in July, faster than the 3.7% increase in the preceding month.

The Hungarian central bank reduced its key interest rate by 50 basis points on Monday. (Market News Provided by RTTNews)