Hungary surprises markets with rate hold

The National Bank of Hungary confounded expectations by opting to keep rates at 8.5%.

The vast majority of analysts had expected the central bank to raise rates a quarter point. The decision follows a series of three consecutive rate hikes, which have seen borrowing costs rise by a full percentage since March.

"Expectations were driven by recently published macro data, a series of hawkish comments by central bank staff and recent rates decisions," said Zoltan Torok and Wolfgang Ernst, analysts