Hungary cuts rates by 20 bps to new low of 2.1 pct

BUDAPEST, July 22 Tue Jul 22, 2014 8:06am EDT

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BUDAPEST, July 22 (Reuters) - The National Bank of Hungary cut its base interest rate by 20 basis points on Tuesday, bringing it to a record low 2.1 percent as evidence of falling price pressures gave it further room to help the economic recovery.

The 24th successive monthly reduction in the base rate was bigger than expected, as analysts in a Reuters poll last week all predicted a 10 basis point cut as in previous months.

The forint traded at 309.70 versus the euro, weaker than 309.20 just before the announcement.

The bank is due to release a statement at 1300 GMT. (Reporting by Krisztina Than and Gergely Szakacs)

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