Hungary cuts interest rates

28 November 2012

Hungary’s central bank decided to cut its main interest rate for the fourth time. The central bank announced it will reduced its two-week deposit rate to 6 percent, which is still the highest in the EU. The cut was approved by a tight majority. The bank has also lowered borrowing costs in July. The move will be controversial for those who argue that the chance of sparking inflation is greater than the chance that relaxed money supply will spur economic growth.

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