Hungary Signals Patience in Monetary Policy to Anchor Forint
- Central bank cuts key rate by 50 basis points to EU-high 7.75%
- Policymakers start a more cautious phase of monetary easing
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Hungary further slowed the pace of cuts to the European Union’s highest key interest rate, with policymakers seeking to anchor the volatile forint in a riskier economic environment.
The National Bank of Hungary reduced the benchmark interest rate by 50 basis points to 7.75% on Tuesday, matching most forecasts in a Bloomberg survey. The unanimous decision compared with a 75 basis-point reduction in March and a full percentage point cut in February.