FX.co ★ Hungary Cuts Key Interest Rate as Inflation Falls

The National Bank of Hungary lowered its benchmark interest rate by 25 basis points to 6% at its June 2026 meeting, in line with market expectations, thereby resuming its monetary easing cycle as inflation continues to moderate. The decline in price pressures has been supported by a stronger forint and lower import costs. The currency has appreciated by more than 8% against the euro since the start of the year, substantially improving Hungary’s inflation outlook by reducing the cost of imported goods. The annual inflation rate slowed to 1.8% in May from a three-month high of 2.1% in April, providing policymakers with additional scope for further rate cuts. This easing stance stands in contrast to that of many other European central banks, where energy-related inflation risks linked to geopolitical tensions have kept monetary policy relatively tight.