Hungary's central bank on Tuesday lowered its policy interest rate for the fifth time in a row to support economic growth even as inflation pressures continued to weaken. The decision was in line with economists' expectations.
The Monetary Council of the Magyar Nemzeti Bank lowered its two-week MNB bill rate by 25 basis points to 5.75 percent, following a similar reduction at the previous rate-setting session.
The bank has reduced the policy rate every month since July, after holding it steady for seven successive months when the country's bailout negotiations with the International Monetary Fund and the European Union stalled, and inflationary pressures remained high.
The economy plunged deeper into recession in the third quarter, with gross domestic product falling 1.5 percent annually due mainly to a sharp contraction in the agricultural sector.
Hungary's annual inflation slowed to an eleven-month low of 5.2 percent in November from 6 percent in October.
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