Hungary continues easing cycle with 25bp cut
Central bank says further rate cuts likely, despite inflationary impact of Iran war
The Central Bank of Hungary (MNB) has continued to loosen policy by enacting a 25 basis point cut.
MNB governor Mihály Varga announced today (July 21) that it was easing the policy rate from 6% to 5.75%, a four-year low. He said the bank’s monetary policy committee (MPC) had reached the decision unanimously.
Varga justified the decision by saying annual inflation had dropped from 1.8% in May to 1.7% in June, while core inflation had remained unchanged at 2%. The MNB targets 3% annual headline
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