Hungary unexpectedly lowers interest rates - by Polya Lesova
Hungary's central bank unexpectedly cut its benchmark interest rate on Monday, saying that economic growth and inflation may be both sharply lower than expected. Earlier this month, the International Monetary Fund approved a $15.7 billion loan for Hungary aimed at restoring confidence in its financial markets. The IMF loan is part of a $25 billion financing package to which the European Union has committed $8.4 billion and the World Bank $1.3 billion.
"The crisis hitting the international financial system has caused a fundamental change in the path of the Hungarian economy in recent months," the central bank said in a statement Monday.
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