The Central Bank of Hungary slashed the key interest rate to 7.5%, the lowest since a year and a half, coming inline with median forecasts from the previous 8%.

The Third monthly cut in a row aimed to secure a 20 billion euros bailout by the IMF the previous year to stall the economic degradation. According to the Bank, the economy is expected to contract 6.7% in the current year and 0.9% in the coming year before returning to growth in 2011.