Hungary's Magyar Nemzeti Bank leaves bank base rate unchanged at 6%

By Melissa Kory

Cleveland, June 20 - The Monetary Council of Hungary's Magyar Nemzeti Bank said it reviewed the latest economic and financial developments and voted to leave the central bank base rate unchanged at 6% at its meeting on Monday.

The council said the recovery of the Hungarian economy is likely to continue over the next two years; however, the level of output will remain below its potential throughout the period.

Domestic demand is expected to recover slowly and gradually. Consequently, inflation may fall back to 3% by the end of 2012 even without policy tightening and despite the cost shocks hitting the economy, the council said.

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