Hungary's Central Bank Lowers Key Policy Rate As Expected

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Hungarian central bank lowered its key policy rate by 50 basis points on Monday. The rate cut came in line with economists' expectations.

The Monitory Council of Magyar Nemzeti Bank reduced its base rate to 7.5% from 8%, with effect from September 29. In August, the central bank had slashed their interest rate by 50 basis points from 8.5%.

Meanwhile, the new overnight central bank deposit rate is 7% and overnight collateralised loan rate is 8%.

Hungary's statistical office had revised Q2 GDP data on September 8. The gross domestic product or GDP decreased a seasonally adjusted 2% sequentially in the second quarter, compared to the 2.6% decline in the previous quarter.

Inflation rate continued to ease in August. The consumer price index or CPI rose 5% year-over-year in August, slower than the 5.1% increase in the preceding month.

But, the jobless rate increased to 9.9% in the June to August period from 9.7% in the May to July period.

Hungarian central bank lowered its key policy rate by 50 basis points on Monday. The rate cut came in line with economists' expectations. (Market News Provided by RTTNews)