The Hungarian central bank once again significantly raised its main interest rate on Tuesday, to 13%, a record level since 2008 to counter inflation and the devaluation of the forint.
The main objective of this decision is to achieve and maintain price stability, while the risk of recession in the world economy has increased, explained the monetary institution in a press release.
The central bank raised its rate by 125 basis points, while analysts expected a rise contained between 75 and 100 points.
The protracted war between Ukraine and Russia, as well as the energy crisis in Europe are put forward as the main factors aggravating instability.
On July 12, the Hungarian central bank had already raised its key rate to 9.75%, a record level since 2008, two weeks after a previous increase which had already established it at its highest level since 2009.
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Faced with inflation at its highest for a quarter of a century and a currency in freefall, the country is battling with the European Commission for the release of 7.2 billion euros in subsidies suspended due to an insufficient fight against corruption.