Rate cuts suspended – The Budapest Times

Written by Rainer Ackermann

As expected, the central bank has left the key interest rate at 6.5%.

‘Due to the worsening external circumstances, further interest rate cuts are out of the question at the moment, our monetary policy remains cautious,’ said the Vice President of the National Bank of Hungary (MNB), explaining the Monetary Council’s decision. Csaba Kandrács emphasised that the sustainable achievement of the inflation target remains a priority.

In addition to the key interest rate, which has been maintained at 6.5%, an interest rate of 5.75% applies to overnight deposits at the central bank and 7.75% for loans. The MNB’s Monetary Council last lowered the key interest rate by 25 basis points at its regular monthly meeting at the end of September.