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Hungary Keeps Main Rate at Record Low Before Deposit Squeeze

  • Central bank cuts overnight lending rate, reserve ratio
  • Central bankers flag readiness to ease policy further
Updated on

Hungary’s central bank left its benchmark interest rate at a record low for a fifth month and signaled its willingness to ease policy further as it rolled out more unconventional measures to loosen monetary conditions.

The National Bank of Hungary left the three-month deposit rate at 0.9 percent Tuesday, matching forecasts. The central bank at the same time cut its overnight lending rate to 1.05 percent from 1.15 percent and lowered the mandatory reserve ratio to 1 percent from 2 percent.