Central Banks
Hungary to Slow Rate Reductions to Anchor Forint
- Central bank seen lowering benchmark rate to 7.75% from 8.25%
- Budget woes, Federal Reserve rate outlook limit rate-cut room
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Hungary is poised to further slow 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 central bank will reduce the benchmark interest rate by 50 basis points to 7.75% on Tuesday, according to 25 out 26 forecasts in a Bloomberg survey. That compares with a 75 basis-point reduction in March and a full percentage point cut in February. The central bank will announce its decision at 2 p.m. in Budapest, followed by a statement and briefing an hour later.