The National Bank of Hungary held its base rate at 0.9 percent during its March meeting, as widely expected, and raised its overnight deposit rate by 10 bps to -0.05 percent. The central bank's move ended a seven-year easing cycle, aiming to curb rising inflation, after the core inflation rate rose further above the 3 percent target in February (3.5 percent from 3.2 percent in January). Meanwhile, the central bank also kept the overnight collateralised loan rate unchanged at 0.9 percent. Interest Rate in Hungary averaged 11.49 percent from 1987 until 2019, reaching an all time high of 28 percent in January of 1995 and a record low of 0.90 percent in May of 2016.
Interest Rate in Hungary is expected to be 0.90 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Hungary to stand at 0.90 in 12 months time. In the long-term, the Hungary Interest Rate is projected to trend around 1.25 percent in 2020, according to our econometric models.