Hungary cuts rates as inflation hits lowest level in nearly a decade
Monetary policy council votes to reduce base rate to 5.5%, extending easing cycle
The Central Bank of Hungary cut its base rate by 25 basis points on August 25.
In a press release announcing the decision, the bank’s monetary policy council (MPC) said annual growth in the consumer price index had eased to 1.2% in July, the lowest inflation figure since January 2017. Hungary fared better than the eurozone, where inflation was 2.9% in July.
Mihály Varga, the MNB’s governor, explained that inflation trends had developed below the baseline scenario the bank outlined in June, and
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