2020.10.2016:03:00UTC+00Hungary Holds Rate Steady For Third Time

Hungary's central bank left its key interest rate unchanged for a third policy session in a row and said it expects the economic recovery to take more time due to the second wave of coronavirus infections. The Monetary Council left the base rate unchanged at 0.60 percent, the Magyar Nemzeti Bank said in a statement on Tuesday. The decision was in line with economists' expectations. The previous change in the base rate was a 15 basis point reduction in July. The deposit rate was kept at -0.05 percent and the lending rate at 1.85 percent. "If warranted by a change in the outlook for inflation, the MNB will be ready to use the appropriate instruments," the bank said in a statement.

The central bank expects GDP to decline by between 5.1 percent and 6.8 percent this year and forecast growth between 4.4 percent and 6.8 percent in 2021. The bank sees economic performance recovering to its pre-crisis level by the turn of 2022.