BUDAPEST - Hungary's central bank decided to continue its tightening cycle on Tuesday as an increase in global uncertainty and fundamental inflation risks warrant "the gradual continuation of the base rate tightening cycle."

"The Monetary Council will continue the cycle of interest rate hikes until the outlook for inflation stabilises around the central bank target and inflation risks become evenly balanced on the horizon of monetary policy," the bank said.

(Reporting by Krisztina Than and Gergely Szakacs)