Hungary Central Bank Left Rates Unchanged

As expected, the Hungarian Central Bank (MNB) left its base rate unchanged at 0.9 percent on Tuesday.

It's the 28th consecutive pause for the base rate in the current easing cycle. Policy makers also left the overnight deposit rate at -0.15 percent, as expected.

On Monday, Hungary's 10-year government bond yields rallied to its highest level since early-July amid expectations that the central bank could tweak a swap tool that encourages banks to buy long-term bonds. 10-years backed up to 3.64 percent.

Inflation ran at 3.4 percent in August, above the midpoint of the bank's 2-4 percent target range. Emerging market investors shouldnn't expect the MNB to get worried unless the forint weakens significantly, lifting import prices.

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