Hungary’s Central Bank Cuts Rate to 5.75%, Signals Further Easing

Hungary’s central bank cut its policy rate to 5.75% and signalled further easing, with Societe Generale expecting a 5.0% terminal rate by year-end and EUR/HUF stabilizing near 348.59.

The Magyar Nemzeti Bank has lowered its policy interest rate to 5.75%, indicating a continued path of monetary easing, according to FX Street. This move reflects the central bank’s efforts to support economic growth amid changing market conditions.

Societe Generale projects that the policy rate could fall further to a terminal rate of 5.0% by the end of the year. Meanwhile, the EUR/HUF exchange rate has already found a floor around 348.59, suggesting limited near-term depreciation of the Hungarian Forint against the Euro.

For Japanese investors, these developments highlight potential shifts in Central European yields and currency dynamics, factors increasingly relevant for portfolio diversification and FX trading strategies in the region.

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執筆: Sama Kane