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24.02.202614:21:37UTC+00Hungary Cuts Key Interest Rate as Inflation Falls

The National Bank of Hungary lowered its benchmark interest rate by 25 basis points to 6.25% at its February 2026 meeting, in line with market expectations, marking its first reduction in nearly 18 months. Annual headline inflation declined to 2.1% from 3.3% the previous month, slipping below the central bank’s 3% target for the first time in five years. Services inflation—described by Governor Mihály Varga as “decisive” for any monetary easing—moderated to 5%. Investors are now looking for indications as to whether this move heralds the beginning of a broader easing cycle.

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