The Hungarian central bank on Tuesday decided to keep its policy interest rate unchanged at 7 percent for the sixth 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.
Last week, Hungarian authorities entered into an agreement with the central bank to bring about amendments to a legislation that hamper bailout talks, which have been suspended since last year after stakeholders including the IMF said the law paused a major threat to the country's monetary-policy independence.
Hungary's annual inflation slowed unexpectedly to 5.3 percent in May from 5.7 percent in April. The economy contracted 0.7 percent annually in the first quarter, sharply slower than the 1.4 percent growth seen in the fourth quarter.
by RTT Staff Writer
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