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Hungary Holds Rate Unchanged Again

Hungary's central bank left its benchmark interest rate unchanged on Tuesday, as expected, citing volatile inflation.

The Monetary Council kept the base rate unchanged at 0.90 percent, the Magyar Nemzeti Bank said in a statement.

The previous change in the rate was a 15 basis points cut in May 2016.

The overnight central bank deposit rate was left unchanged at -0.05 percent. In March, it was cut by 10 basis points.

The one-week collateralized loan rate was retained at 0.90 percent.

The monetary policy stance will continue to be accommodative, economic agents' financing costs will be favourable, the bank said in a statement.

"A dichotomy remains between the factors determining likely developments in inflation," the MNB said.

"Buoyant domestic demand is boosting, while persistently muted external activity is restraining the pace of inflation."

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