Hungary Interest Rate

Hungary's central bank lowered its base rate by 25 basis points to 6.5% during its September 2024 meeting, in line with expectations, following a pause in its rate-cutting cycle last month after ten consecutive reductions since October 2023. Additionally, The rates on collateralized loans and overnight deposits were also cut by 25 basis points, to 7.5% and 5.5%, respectively. Deputy Governor Barnabas Virag had previously indicated that the pause was temporary, suggesting room for one or two more quarter-point cuts this year, depending on inflation trends and policy decisions by the Federal Reserve and European Central Bank. In August, Hungary's headline inflation dropped to 3.4%, the lowest in three and a half years, down from 4.1% in July, while core inflation edged slightly lower to 4.6% from 4.7%.