Hungary Cuts Base Rate to 6.75% as Expected

2024-07-23 12:02 By Tiago Campos 1 min. read

The central bank of Hungary lowered its key base rate by 25 basis points to 6.75% during its July 2024 meeting, marking the tenth reduction since monetary easing began in October and aligning with market expectations.

Additionally, the rates on collateralized loans and overnight deposits were reduced to 7.75% and 5.75%, respectively.

In June, domestic consumer prices eased to 3.7% year-on-year, falling below market forecasts and May's five-month high of 4%, remaining within the central bank's tolerance band.

Looking ahead, the risks surrounding global and domestic disinflation, the volatility of international investor sentiment, and the anticipated interest policies of globally dominant central banks justify a cautious and patient approach to monetary policy in the future.



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