EU to cut off funds to Hungary, OECD sees recession

* EU finmins prepare to freeze development funds for Hungary

* OECD sees economic contraction, urges new fiscal measures

* Report criticises Hungarian cbank law, other unconventional reforms

* Says further fiscal consolidation could create room for rate cuts

By Krisztina Than and Robin Emmott

BUDAPEST/BRUSSELS, March 13 (Reuters) – The European Union prepared to freeze half a billion euros in aid to Hungary on Tuesday, for the first time punishing a member state for flouting [...]