Budapest - Hungary's central bank raised its benchmark interest rate Monday for the third time in a row, seeking to fight inflation driven in part by rising wages.

The bank's policy-making council voted to raise the base rate to 8.5 per cent from 8.25 per cent, effective Tuesday, a central bank statement said.

The Hungarian National Bank also raised the rate at each of its last two meetings, including by half a percentage point in March. (dpa)