Hungary Bank continues its feud

The central bank of Hungary raised interest rates by a quarter of a per cent yesterday, bringing the rate to 5.75 per cent. The hike was attributed to above target consumer price index (CPI) inflation, which hit 4.2 per cent in November. Yet analysts say the rise signals an increase in tensions between the Bank and the government, which continues with exceptionally high taxes and “unsustainable” fiscal policies.