Hungary: Simor Criticizes Interest Cut

Politics ♦ Published: September 26, 2012; 21:30 ♦ (Vindobona)

The governor of Hungary´s National Bank Andras Simor warns of an increase in inflation.

Hungary: Simor Criticizes Interest Cut / Picture: © Hungarian Central Bank

After the Hungarian economy dropped by 1.3% in the second quarter of 2012 against the reference period of 2012, the Hungarian Central Bank lowered the bank interest rate from 7.00% to 6.75% in August 2012. This cut came rather as a surprise.

In January, the Hungarian National bank has cut the base rate from 7.00% to 6.75%. Before, the base rate stood at 7.00% for years. Now, the…