Hungary holds rates after June ‘turning point’
Finance minister says central bank was operating in “cyclops mode”
The Central Bank of Hungary (MNB) paused its easing campaign on August 27 after 10 consecutive interest rate cuts.
It left the corridor unchanged, with the key policy rate staying at 6.75%, after inflation rose to 4.1% in July. Its target rate of inflation is 3% in annual terms with a 1% tolerance band.
The MNB said in June that it had passed a “turning point” in its monetary policy, and that any future decisions would either be to hold rates or cut them by only 25 basis points.
The monetary
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