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May 26, 2016

Hungary's central bank freezes base rate at 0.9 percent

Interest rate cuts have been halted and the base rate freeze should last for as long as possible

Hungary's central bank has frozen its base rate at 0.9 percent and would like to keep it that way for "as long as possible", according to reports.

National Bank of Hungary deputy governor Marton Nagy said that the central bank had no exchange rate target but welcomed the stability of the forint exchange rate.

He said there was no need for any further steps in monetary policy for now.

"If we were to make a move -- which is not the case now -- then it is likely that it would be unconventional tools in the name of fine-tuning," Nagy said.