• Home
• Channel: Finance
• Hungarian National Bank Suddenly Cuts Base Rate After Four Years

Hungarian National Bank Suddenly Cuts Base Rate After Four Years

• 24 Jun 2020 10:25 AM
• Hungary Around the Clock

Contrary to all forecasts, the MNB’s monetary council cut the base rate for the first time in four years yesterday, from 0.9% to 0.75%.

The overnight deposit and lending rates remained unchanged at -0.05% and 1.85%.

The coronavirus crisis brought along strong deflationary tendencies that allow for monetary easing, the monetary council said in its comment.

Other central banks in Eastern Europe have lowered their base rates in response to the epidemic, Portfolio remarks.

According to the council, the strong disinflationary effects have led to a lasting downward shift in the inflation outlook, so it was necessary to fine-tune the interest rate conditions in order to maintain price stability and support the recovery.

The current toolbox of available measures provides sufficient room for manoeuvre to address emerging challenges in a targeted and flexible manner, the council said.

Click here to read the full report issued by the Hungarian National Bank

Related links

Governor: Bank Base Rate Cut Serves To Jumpstart Hungarian Economy

• How does this content make you feel?
• I love it
• I like it
• I dislike it

• Hungarian National Bank Base Rate

XpatLoop Media Partner

Hungary Around the Clock

Since 1995 Hungary Around the Clock has proven to be one of the most comprehensive sources of daily English-language news about Hungary. It covers ongoing domestic politics and foreign relations, as well as business and economic matters. For a free trial of HATC visit www.hatc.hu and click on 'Free Trial Subscription’.

Explore More Reports

Forint Hits 18-Month High

• 20 Nov 2025 6:45 AM

By early Wednesday evening, the euro's exchange rate approached 381 Forints, marking an 18-month high for the Hungarian currency. The euro stood above 384 Forints on Wednesday morning, but the Forint began to strengthen steadily from 11 AM, with the rate falling below 381.7 Forints just before 7 PM.



Analysis: National Bank of Hungary Holds Key Base Rate Steady at 6.50%

• 19 Nov 2025 7:42 AM

The Monetary Council of the National Bank of Hungary (NBH) decided to leave the central bank base rate unchanged at 6.50pc at a monthly policy meeting on Tuesday.



Par'lt Approves Measures Easing Tax, Administrative Burden for Small Businesses in Hungary

• 19 Nov 2025 7:22 AM

Lawmakers approved measures to reduce the tax and administrative burdens of small businesses in a vote on Tuesday.



Hungary Scores 63 on Mastercard Digital Payment Index

• 12 Nov 2025 5:36 AM

Hungary's score on the Mastercard Digital Payment Index has reached 63 on a scale of 1 to 100. Hungary's score on the index, which assesses the digitalisation of consumer payments in the areas of market readiness, digital payment adoption and consumer knowledge and attitudes, improved twelve points in five years, Mastercard said.