The National Bank of Hungary held its benchmark base rate unchanged at 0.9 percent on July 23rd 2019, as expected after the target for excess liquidity in the economy for the third quarter was reduced in the previous meeting. In June, annual inflation rate fell to 3.4 percent from 3.9 percent in May, easing toward the 3 percent NBH’s target. The overnight collateralised loan rate and the overnight central bank deposit rate were also kept at 0.9 percent and -0.05 percent, respectively. Interest Rate in Hungary averaged 11.40 percent from 1987 until 2019, reaching an all time high of 28 percent in January of 1995 and a record low of 0.90 percent in May of 2016.
Interest Rate in Hungary is expected to be 0.90 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Hungary to stand at 0.90 in 12 months time. In the long-term, the Hungary Interest Rate is projected to trend around 1.25 percent in 2020, according to our econometric models.