The Monetary Council of the Hungarian National Bank (Magyar Nemzeti Bank, MNB) cut the base rate by 75 basis points to 8.25 percent.
The MNB had already lowered the key interest rate by 100 basis points in February. Smaller steps will now follow, as the MNB continues to see major risks, for example with regard to global disinflation processes. In addition, the domestic inflation rate is likely to rise again slightly towards the middle of the year, which will require a cautious monetary policy. According to the MNB, the average inflation rate is likely to stabilise at between 3.5-5% this year. However, the MNB is still forecasting an inflation rate of 6.5-7% by the middle of the year.