BUDAPEST: Hungary’s central bank on Tuesday cut its main interest rate to a new post-communist record low of 1.35 percent from 1.5 percent, in its fifth such 15-basis-point drop in as many months.
The cut was slightly larger than most analysts’ forecasts of 10 basis points.
The bank’s rate-setting Monetary Council earlier said that its policy of “cautious easing” would continue “as long as it supports the achievement of the medium-term inflation target”.
Annual inflation in the non-euro zone EU member state was just 0.6 percent in June, after an eight-month period of negative inflation, which lasted until April.
