Hungary Cuts Base Rate to 6.25% Amid Economic Recovery

The National Bank of Hungary (MNB) has cut its base rate by another 25 basis points to support economic recovery. The decision brings the current base rate to 6.25%, following a series of gradual rate cuts that began in late 2024.

This move is widely seen as a cautious approach, balancing the need to stimulate growth against concerns about currency stability and global economic uncertainties. According to the central bank's statement, the easing path is conditional on inflation remaining subdued and on the outlook for the domestic economy.

The Hungarian forint has remained relatively stable against the euro after the announcement, suggesting that the rate cut was largely priced in by markets. Analysts view the move as supportive of credit growth and investment, which are crucial for Hungary's recovery from the recent economic slowdown.