Central Bank Reduces Base Rate by 0.5 pct

The Monetary Council of the National Bank made a surprise decision to many analysts by cutting 50 base points.

 

The Monetary Council of the National Bank made a surprise decision to many analysts by cutting 50 base points of the interest rate. London experts predict an ongoing radical reduction of the base rate until it reaches 7 pct in January, 2009. The National Bank raised the rate radically in October, 2008, after the strong “speculative attack” against Hungary’s forint. The Hungarian Banking Association greeted the reduction as a step towards better liquidity.

News Monitoring