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Hungary's central bank keeps interest rates unchanged

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Hungary's central bank keeps interest rates unchanged

The central bank of Hungary kept its base rate on hold at 0.90%, saying that steadiness is necessary to reach its inflation target in a sustainable manner.

Magyar Nemzeti Bank also maintained the overnight deposit at negative 0.15%, the overnight collateralized lending rate at 0.90% and one week collateralized lending rate at 0.90%.

The central bank said the European country's economic growth will pick up further in 2018 and gradually slow down from 2019. It also expects inflation target to be achieved by mid-2019.

Inflation and core inflation stood at 1.9% and 2.4%, respectively, in February. Both figures were in line with the central bank's expectations.