Hungary sees rate cut possible if euro plan gains traction
Hungary could deliver another interest rate cut this year if external market conditions remain favourable and the government presents a credible euro adoption plan. Deputy governor Zoltan Kurali noted that clearer fiscal policy would improve risk sentiment.
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Hungary's central bank kept its base rate steady at 5.5% on Tuesday while leaving the door open for a rate cut by late 2026. The move follows a lowering of the inflation target to 2.5% as part of efforts to adopt the EUR/HUF currency framework. Investors are watching fiscal plans as the government targets euro adoption by 2032.
