Hungary's central bank surprised the markets Monday by cutting its benchmark interest rate more than expected.

Magyar Nemzeti Bank lowered its base rate by 100 basis points to 8.50%.

Most analysts expected a reduction of only 50 basis points. After the rate cut, the Hungarian forint traded down 0.8% against the euro.

Hungary is mired in a deep recession and has received aid from the International Monetary Fund and other institutions.

Source: Marketwatch