29 November 2011

HUNGARY: C.Bank Raises Benchmark To 6.5%...EU's Highest.


     The central bank has raised its benchmark interest rate...by 50 bps...to 6.5%...from 6%.
     It was the CB's first raise since January...and Hungary now has the highest benchmark of all 27 EU members.
    The vote was unanimous.
   However...it failed to help the forint's value vs the euro.
   Hungary recently was downgraded to 'junk' by Moody’s.