Hungría Tasa De Interés

The central bank of Hungary lowered its key base rate by 50 bps to 7.75% during its April 2024 meeting, the seventh reduction since monetary easing began in October and in line with market estimates. The rates on collateralized loan rates and overnight deposits were also cut to 8.75% and 6.75%, respectively. March saw a moderation in consumer inflation to 3.6% year-on-year, the smallest uptick since February 2021, signaling inflation remains within the bank's acceptable range. However, the forint hit a one-year low last month, partly due to tensions between the bank and Prime Minister Viktor Orban's government, which advocates for more aggressive rate reductions. The central bank warned that currency weakness has significantly intensified inflationary pressures. Going forward, policymakers are expected to continue loosening monetary policy but at a slower pace, evaluating data before making further adjustments to the base rate.