16.10.201808:51:00UTC+00Hungary Central Bank Keeps Key Rate Unchanged

Hungary's central bank left its benchmark interest rates unchanged on Tuesday, in line with economists' expectations.

The Monetary Council of the Magyar Nemzeti Bank decided to hold the base rate steady at 0.90 percent.

The previous change in the rate was a 15 basis points reduction in May 2016.

The overnight central bank deposit rate was kept at -0.15 percent, after it was trimmed by 10 basis points last September. The rate was slashed to negative in 2016.

The one-week collateralized loan rate was left unchanged at 0.90 percent. Inflation at 3.4 percent in August was above the bank's target of 3 percent. Wage growth remains strong.

Headline inflation accelerated further in September to 3.6 percent, which was above the bank's target of 3 percent.