Hungary's central bank on Tuesday decided to keep its policy interest rate unchanged at 7 percent for the fifth time in a row. The decision was in line with economists' expectations.
The last time the Magyar Nemzeti Bank made changes to the rate was in December last year, when it hiked it by 50 basis points, following a similar increase in the preceding month.
Hungary's consumer price inflation accelerated to 5.7 percent in April from 5.5 percent in March, owing mainly to higher food prices. Core inflation was 5.1 percent during the month.
The Hungarian economy shrunk a faster-than-expected 0.7 percent annually in the first quarter, after expanding 1.4 percent in each of the previous two quarters. The latest was the first contraction in at least two years. Sequentially, GDP decreased 1.3 percent during the quarter.
by RTT Staff Writer
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