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The Hungarian central bank reduced its interest rate by 25 basis points to 6% on Tuesday, according to an official statement posted on its website. This is the fourth straight month it has enacted such a reduction. As a result, the policy rate is now exactly one percentage point lower than where it stood as recently as this past August.
The new cut is the central bank's latest attempt to spark a moribund economy. Such efforts have engendered criticism, with the Organization for Economic Co-operation and Development (OECD) saying that such moves "risk compromising price stability and undermining policy credibility."
The international economic body is not the only one expressing concern over Hungary's economic policies. Last week, Standard & Poor's reduced its rating on the country's sovereign debt to a BB from the previous BB+.