Hungary Cuts EU’s Highest Key Interest Rate to Spur Economy
- Central bank cuts its key 1-day deposit rate to 17% from 18%
- Move expected to be first step in a months-long easing cycle
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Hungary cut its key interest rate for the first time in three years as it begins to dismantle an emergency monetary regime that halted a forint selloff and helped rein in runaway inflation.
The central bank lowered its overnight interest rate by a full percentage point to 17%, Governor Gyorgy Matolcsy announced during an online briefing on Tuesday. The move matched the median expectation in a Bloomberg survey. The central bank also kept its base interest rate at 13%.