The Hungarian central bank on Tuesday slashed its benchmark interest rate for the tenth consecutive month to a record low as the economy remained mired in recession and inflation pressures eased further. The decision was in line with economists' forecast.
The Monetary Council of the Magyar Nemzeti Bank lowered its two-week deposit rate by 25 basis points to 4.75 percent, following a similar reduction in April. The bank has cut the rate every month since July, after holding it steady for seven months in a row.
Hungary's consumer price inflation eased for a seventh consecutive month to 1.7 percent in April from 2.2 percent in March. Inflation has been easing steadily since October last year. Core inflation eased to 3.2 percent from 3.4 percent.
The economy remained in recession in the first quarter, but the downturn eased slightly compared to the final months of last year. Unadjusted gross domestic product (GDP) decreased 0.9 percent year-on-year, following a 2.7 percent fall in the fourth quarter of 2012. On a calendar-adjusted basis, GDP fell 0.3 percent annually during the three-month period.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.