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Hungary’s IMF Talks Create July Rate-Cut Room: Officials

Hungary held off on cutting the European Union’s highest benchmark rate, opting for caution amid concern about inflation and possible delays in loan talks with the International Monetary Fund and the European Union.

The Magyar Nemzeti Bank kept the two-week deposit rate at 7 percent today for a seventh month, matching the forecast of 20 economists in a Bloomberg survey. One expected a cut to 6.75 percent. The Monetary Council backed keeping rates on hold with a “substantial majority’ after considering a quarter-point cut in the benchmark rate, Governor Andras Simor said at a press conference in Budapest today.