28 August 2012

HUNGARY / IMF : CBank Unexpectedly Cuts Benchmark By 25 Bps...To 6.75%.


     For the first time in 2.5 years...the central bank cut its 2-week interest rate...by 25 bps...to 6.75%...as recession takes hold in Central Europe.
     Many economists expect further easing.
     The FORINT weakened by 1.4% on the news.
     Inflation there accelerated again in July to 5.8%.
     Hungary is still looking for a $15 billion euros loan from the IMF.