Hungary’s central bank lifted its benchmark rate at a sharper-than-expected pace on Tuesday.
The Monetary Council, led by Governor Gyorgy Matolcsy, hiked the base rate by 125 basis points to 13.00 percent from 11.25 percent.
The overnight deposit rate was increased by 125 basis points to 12.50 percent and both the overnight and one-week collateralised lending rates were raised by 125 basis points to 15.50 percent.
The central bank has raised the key interest rate in every policy session since June last year.
Nicholas Farr at Capital Economics said the ongoing strength of inflation will convince the MNB to hike interest rates further than most expect, with rates reaching a peak of 14.00 percent by end-year.
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