Hungary keeps base rate steady at record low 0.9pc

BUDAPEST: The National Bank of Hungary kept its base rate unchanged at a record low on Tuesday, in line with market expectations, while cutting its overnight collateralised loan rate by 15 basis points to 0.9 percent, narrowing the interest rate corridor.

The bank, run by Gyorgy Matolcsy, a strong ally of Prime Minister Viktor Orban, left its base rate unchanged at 0.9 percent, in line with the unanimous forecast of 16 analysts in a Reuters poll last week.

It also left the overnight deposit rate on hold at -0.05 percent.

The Monetary Council will publish a policy statement at 1400 GMT.