The Hungarian Monetary Council decided on it May 23rd, 2005 meeting to reduce the base rate of the National Bank of Hungary (NBH) by 25bps to 7.25%.
This cut may have been the last for several months to come after a series of reductions which have been brought rates down from 12.50% since March 2004, said HVB Bank Hungary representative Dora Horvath, citing market analysts.
Further, Horvath elaborated on the impact to investors of the latest cut. “HUF current account rates linked to the NBH base rate will be reduced by HVB Bank Hungary accordingly and interbank rates will also follow the base rate cut automatically.”