Summary The central bank has lowered its main interest rate 12 times by 25 basis points.
BUDAPEST (AFP) - Hungary s central bank (MNB) cut its main interest rate Tuesday to a new record low level of 3.2 percent from 3.4 percent, in line with analyst expectations.
The cut, announced on the bank s website, was the 16th in a row in an easing cycle begun in August 2012 when the rate was 7.0 percent.
At 1400 GMT, the MNB was due to release a statement explaining its decision.
The central bank has lowered its main interest rate 12 times by 25 basis points before it started reducing the monthly cut to 20 points in August this year.
Hungary s low inflation outlook, as well as the favourable market sentiment, have supported taking the base rate to a historically low level, the bank has said over the past few months.
Hungarian inflation, previously one of the highest in the EU, plunged to 0.9 percent in October, surprising analysts who had forecast a rate of 1.3 percent.
The national currency, the forint, strengthened slightly after Tuesday s announcement, trading at 298.72 to the euro just compared to 298.85 before.
