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Hungary’s central bank lowered its benchmark interest rate to 5.50% in August 2026, down from 5.75% in July, continuing its gradual monetary easing path. The latest move, recorded in August and updated as of 25 August 2026, marks a further 25-basis-point cut in borrowing costs.
The August decision signals the authorities’ willingness to cautiously reduce rates after previously holding the benchmark at 5.75% in July 2026. While the cut is modest, it underscores an ongoing shift toward a less restrictive policy stance as conditions allow, with markets likely to watch closely for any indication of the pace and scope of further easing in the months ahead.
