Policymakers Cut Central Bank Base Rate by 75 bp to 12.25%

MNB

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The Monetary Council of the National Bank of Hungary (MNB) decided to cut the central bank base rate by 75 bp to 12.25% at a monthly policy meeting on Tuesday, according to a report by state news wire MTI.

The council also decided to lower the symmetric interest rate corridor in tandem, bringing the O/N deposit rate to 11.25% and the O/N collateralized loan rate to 13.25%.

"Strong disinflation and a reduction in the country's vulnerability allow the [MNB] to continue shaping monetary conditions by lowering the base rate," the council said in a statement published after the meeting.

"At the same time, a cautious approach and a slower pace of interest rate cuts are warranted in view of the increasing external risks," the policymakers added.

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