25.08.202613:21:02UTC+00Hungary Cuts Rate as Expected

The National Bank of Hungary lowered its base rate by 25 bps to 5.5% at its August 2026 meeting, as widely expected by markets, marking the fourth rate cut this year. The further easing of monetary policy reflects the subdued inflation environment in Hungary. Headline inflation fell to 1.2% in July, while core inflation declined to 1.9%, despite a recent uptick in price pressures among most of Hungary’s trading partners following the outbreak of war in the Middle East. Meanwhile, the forint has remained stronger than its average level since 2022, preserving the gains recorded since Prime Minister Magyar took office and reinforcing the room for the central bank to support the domestic economy.