The National Bank of Hungary held its benchmark base rate unchanged at 0.9 percent on June 25th 2019, after inflation rate came in at 3.9 percent, its highest level since December 2012 and near the top of the NBH's 2-4% target range, on the back of the increase in excise duty. At the same time, core inflation jumped to 4 percent in May from 3.7 percent in April, its highest level since September of 2012. A new round of excise duty hikes on tobacco products is expected to kick in from July. The overnight collateralised loan rate and the overnight central bank deposit rate were also kept at 0.9 percent and -0.05 percent, respectively. Interest Rate in Hungary averaged 11.42 percent from 1987 until 2019, reaching an all time high of 28 percent in January of 1995 and a record low of 0.90 percent in May of 2016.
Interest Rate in Hungary is expected to be 0.90 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Hungary to stand at 0.90 in 12 months time. In the long-term, the Hungary Interest Rate is projected to trend around 1.40 percent in 2020, according to our econometric models.