Magyar Nemzeti Bank lowers base rate by 25bps, signaling further cuts amid stable inflation and market conditions.
Hungary’s central bank reduced its base rate to 5.75% in a 25-basis-point cut, matching analyst expectations. The move extends the easing cycle restarted in June, with guidance suggesting additional cuts through the summer if inflation and financial conditions remain favorable.
The decision follows a prior 25bps cut in June and aligns with the bank’s projection of maintaining positive real rates. Despite recent forint volatility, the MNB dismissed concerns, citing improved inflation trends and lower domestic risk premiums. A reassessment is planned for September.
The forint has outperformed peers like the Polish zloty, though the MNB’s dovish communication kept easing prospects alive. Markets await further signals on the pace of cuts.