Hungary's central bank kept interest rates at a three-year high for a third month, Bloomberg News reports.

The Magyar Nemzeti Bank in Budapest left the two-week deposit rate at 8.5%. The decision matched the forecast of all 23 analysts in a Bloomberg survey. The bank expects to reach its inflation goal in the second quarter of 2010, according to its updated economic forecasts.

The forint was the best-performing European currency in the second quarter, gaining 11% against the euro. The currency's strength allowed policy makers to avoid further rate increases in their bid to curb inflation, which has exceeded their target for two years.

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