RTTNews - The Hungarian central bank reduced its key interest rate by 100 basis points on Monday.

The Monetary Council of the Magyar Nemzeti Bank slashed the base rate to 8.5% from 9.5%, with effect from July 28. Economists had expected only 50 basis point cut. The last change in rate was a 50 basis point reduction at its January meeting.

Meanwhile, the new overnight central bank deposit rate is 8% and overnight collateralised loan rate is 9%.

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