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.
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Hungary Unexpectedly Hikes Key Interest Rate
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