Hungary Unexpectedly Hikes Key Interest Rate

(RTTNews) - Hungary's central bank on Monday unexpectedly raised its key interest rate for the second straight month.

The Magyar Nemzeti Bank hiked the rate by a quarter point to 5.75% from 5.5%. Economists had forecast the central bank to leave the interest rate unchanged.

Majority of Hungarian central bankers backed a rate hike in November given the rise in inflation. According to minutes of the November meeting, Tamas Banfi of the seven-member committee sought to keep the rate unchanged, while all the other members favored a 25-basis point hike.