Hungary’s central bank cuts base rate to 5.75%

Hungary’s central bank lowered its base rate by 25 basis points to 5.75% on Tuesday. The decision matched market expectations.

The rate cut follows declining inflation in the country. The forint has strengthened after Prime Minister Peter Magyar shifted policy toward a more pro-European Union stance.

The central bank had indicated in June that falling inflation would allow for additional easing during the summer months. Tuesday’s rate reduction aligns with that guidance.