The National Bank of Hungary raised its benchmark base rate by 30 basis points to 0.9 percent on June 22th, a level not seen since May of 2020 and slightly above market expectations of a 25 bps increase, while the overnight deposit rate was left unchanged at -0.05 percent. Nonetheless, the interest rate hike wasn’t a total surprise, as policymakers had previously expressed that the central bank would commence its tightening cycle to tackle concerns about strong inflationary pressures, amid a faster-than-expected economic recovery. In May, the annual inflation rate stood at 5.1 percent, the same as in the month before and above the central bank’s tolerance band of 2-4 percent, mainly driven by a 36.2 percent surge in fuel prices. The monetary council said headline inflation will likely remain above the target range until the end of the year. source: National Bank of Hungary
Interest Rate in Hungary averaged 10.88 percent from 1987 until 2021, reaching an all time high of 28 percent in January of 1995 and a record low of 0.60 percent in July of 2020. This page provides the latest reported value for - Hungary Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Hungary Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on July of 2021.
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 1.00 in 12 months time. In the long-term, the Hungary Interest Rate is projected to trend around 1.25 percent in 2022 and 1.50 percent in 2023, according to our econometric models.