Hungary Wants Banks to ‘Voluntarily’ Agree to 5% Mortgage Cap

Hungary is in talks with lenders to convince them to agree to a “voluntary” cap on mortgage rates to boost economic growth, Cabinet Minister Gergely Gulyas said.

Economy Minister Marton Nagy has already held talks with banks about a plan to maximize mortgage rates at 5%, Gulyas told a briefing on Wednesday in Budapest. That’d be below the central bank’s 6.5% key interest rate, which is currently tied with Romania for the highest benchmark in the European Union.