By www.CentralBankNews.info Hungary’s central bank cut its benchmark base rate by 25 basis points to 5.75 percent, its fifth rate cut in a row.
The National Bank of Hungary will release further details about its interest rate decision later. The central bank has now cut its benchmark rate by 125 basis points this year to help revive growth.
Hungary’s Gross Domestic Product contracted for the second quarter in a row by 0.2 percent from the previous quarter for an annual shrinkage of 1.5 percent in the third quarter, up from annual decline of`1.3 percent in the second quarter.
Inflation is continuing to fall, hitting 5.2 percent in November, down from 6 percent. The Hungarian central bank targets inflation of 3 percent in the medium term.