Hungary Cuts Rate
Hungary's central bank cuts base rate to 6.00% and forecasts inflation and growth
Consensus expectations: 4.5%e v 4.5% prior Recent comments: - On Jun 23rd Hungary Central Bank (MNB) cut the Base Rate by 25bps to 6.00% (as expected) to resume rate cuts (13th overall) following three prior pauses under current phase of its easing cycle.
The post rate decision statement noted that the decision to cut by 25bps was not unanimous; Saws room for further interest rate cuts throughout the summer if favourable conditions persisted.
Committed to achievement of inflation target in a sustainable manner Updated Staff Forecasts Inflation - Cut 2026 CPI forecast from 3.8% to 1.8% - Cut 2027 CPI forecast from 3.7% to 2.3% - Maintained 2028 CPI forecast at 3.0% Growth - Raised 2026 GDP forecast from 1.7% to 2.0% - Maintained 2027 GDP growth forecast at 3.0% - Maintained 2028 GDP growth forecast at 2.9%