Hungary cuts rates by 50 basis points
Outlook could be impacted by government’s proposed fuel subsidies
The monetary policy committee of the Central Bank of Hungary (MNB) voted to reduce the base rate to 7.75% on April 23, citing growth opportunities in the second half of the year.
The move was the seventh consecutive rate cut, following a peak of 13% in September 2022 after inflation climbed to 25% in 2022. The MNB also adjusted the deposit rate to 6.75% and the collateralised lending rate to 8.75%.
The central bank targets 3% inflation with a 1% band. The central statistics agency of Hungary said
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