National Bank of Hungary Review

The National Bank of Hungary kept its base rate at 6.25% but signaled a potential pivot toward easing, with ING now forecasting a 25bp cut in June.

Key Takeaways

• 1.The National Bank of Hungary (NBH) held the base rate at 6.25% in May, but dovish signals during the Q&A suggest a shift toward potential easing as early as June.
• 2.Dissenting votes were recorded during the May meeting, with some members favoring an immediate rate cut, an unusual occurrence for the NBH.
• 3.Market pricing now reflects a terminal rate of approximately 5.25%, implying 100bp of total easing over the current cycle.

Table of Contents

• ING's policy view: A rate cut in Hungary could be closer than we thought
• ING's market views
• Author
• Disclaimer

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