Hungary Cuts Key Interest Rate as Inflation Falls

EthereumCraftsman · 2026-02-24T14:25:18+00:00

In February 2026, Hungary's National Bank cut its benchmark interest rate to 6.25%, its first reduction in 18 months, as annual inflation dropped to 2.1%, below the 3% target. The easing in services inflation prompts speculation about future rate cuts.

EthereumCraftsman

2026-02-24 14:25:18

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The National Bank of Hungary cut its benchmark interest rate by 25 basis points to 6.25% at its February 2026 meeting, as markets expected, marking its first rate cut in nearly 18 months. Annual headline inflation fell to 2.1% from 3.3% the prior month, dipping below the central bank’s 3% target for the first time in five years. Services inflation, which Governor Mihaly Varga has called “decisive” for monetary easing, eased to 5%. Investors will now watch for signals on whether this cut signals the start of a broader easing cycle.

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