Hungarian central bank cuts key interest rate by half percentage point

BUDAPEST (AFP) - The Hungarian central bank lowered its benchmark interest rate by 50 basis points, from 11.0 percent to 10.5 percent, the bank said in a statement posted on its website.
The cut in Hungary's interest rate, still the highest in the European Union, was widely expected after September inflation data published last week showed a bigger fall than had been expected.
The central bank had cited inflation concerns for keeping the interest rate high despite repeated calls by the government to lower it to make it cheaper for the state to finance the public debt and to help exporters by weakening the currency.