Hungary Central Bank Raises Rates, Defies Orban Plea

Hungary’s central bank increased the main interest rate for a second month on concern that inflation will accelerate as policy makers defied Prime Minister Viktor Orban’s calls for lower borrowing costs to protect growth.

The Magyar Nemzeti Bank raised the benchmark two-week interest rate to 5.75 percent from 5.5 percent after a surprise increase last month, the first since 2008. The decision was “near-unanimous,” central bank President Andras Simor said. Eleven of 23 analysts predicted the move in a Bloomberg survey.