Hungary’s central bank retained its key benchmark rate at a record low on Tuesday after cutting it for five straight months amid slowing inflation and weak growth.
The Monetary Council of the Magyar Nemzeti Bank decided to hold the interest rate at 1.35 percent as expected by economists.
It had lowered the rate by 15 basis points each in March, April, May, June and July.
While additional interest rate cuts are unlikely, William Jackson, an economist at Capital Economics expects policymakers to downplay any expectations for rate hikes. The economist expects the policy rate to stay unchanged both this year and next.
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