world-economy

Hungary's Central Bank Cuts Rates for Third Consecutive Time as Inflation Hits 10-Year Low

Hungary's central bank moved forward with its third consecutive interest rate reduction Wednesday as inflation cooled to its lowest point in a decade, prompting policymakers to reassess their price-growth target.

The reduction reflects easing price pressures across the economy, with officials signaling confidence in the disinflationary trend. The central bank is expected to formally review its inflation objective in coming weeks as part of a broader policy recalibration.

The rate cuts mark a shift in monetary stance after an extended period of tightening. Policymakers indicated that recent declines in price growth have created room for accommodation, though they remain cautious about potential headwinds to the outlook.

The decision positions Hungary among central banks globally that have begun easing cycles as inflation moderates from earlier peaks.