Hungarian central bank cuts key interest rate by half a point

Published: 24 November 2004 y., Wednesday
Hungary's central bank again lowered its benchmark interest rate by 50 basis points, from 10.5 to 10 percent, the bank said. The rate cut was expected by the markets because Hungary's national currency, the forint, strengthened last week against the main foreign currencies and inflation has dropped. "Decreasing the rate by 50 basis points has been possible firstly because the inflation rate is decreasing and the tendency shows that it is likely to continue to decrease," the bank said in a statement on its website. Inflation has shown a downward trend after peaking at 7.6 percent in May. Last month it rose by a relatively low 0.5 percent compared to September and by 6.3 percent compared to October 2003. The central bank on October 18 also cut the benchmark interest rate by 50 basis points, but the rate remains the highest in the European Union
Šaltinis: story.news.yahoo.com
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