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Hungary central bank cuts base rate to 5.50%, supports forint

MNB said policy after the cut will be guided by September’s Inflation Report, while noting it will watch global rate hikes for limits on further easing.

Reported · Written up by our desk · Central Banks

Hungary’s central bank, the Magyar Nemzeti Bank (MNB), cut its base rate by 25 basis points to 5.50%, but signaled it would not pre-commit to additional easing, according to analysis cited by FXStreet.

The central bank said it will use its September Inflation Report to guide the next steps for monetary policy, and it will also monitor global rate increases, which could narrow the scope for further cuts.

Commerzbank’s Tatha Ghose said the emphasis in MNB communication was modestly supportive for the Hungarian forint, with FX markets reacting positively to the decision.

The commentary also framed MNB’s stance as a shift from earlier signals about room for easing during the summer, with the overall rate-cut cycle to be reconsidered after the September outlook.

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