Central Banks

Hungary Pauses Rate Cuts After Inflation Jump, Forint Drop

  • Central bank kept key rate unchanged after 15 consecutive cuts
  • Decision matched the median estimate in a Bloomberg survey
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Hungary’s central bank said there may be room for further “cautious” interest-rate cuts after pausing monetary easing for the first time in more than a year.

Policymakers in Budapest left the benchmark rate at 6.75% on Tuesday following 15 consecutive cuts. The decision matched the forecasts of most economists in a Bloomberg survey and left the country’s borrowing costs at the highest level in the European Union.