Hungary Raises Base Interest Rate from 1.50% to 1.65%, Fourth Rate Hike

[Asia Economy Reporter Eunbyeol Kim] The Hungarian Central Bank raised the base interest rate by 0.15 percentage points from 1.50% to 1.65% on the 21st (local time).

According to Hungary Today and others on the day, the Hungarian Central Bank implemented its fourth rate hike since starting to raise rates in June.

However, unlike the previous monthly increases of 0.3 percentage points until last month, the Hungarian Central Bank slowed the pace this time by raising the rate by 0.15 percentage points.

The Central Bank explained, "The rate hike cycle will continue until the inflation outlook stabilizes sustainably near the target and the inflation risk balances with the level of monetary policy," adding that the tightening effects are expected to fully materialize next year.