The National Bank of Hungary (NBH) cut its base rate by another 25 basis points to 6.5% on Tuesday, aided by a fall in inflation and last week's larger-than-usual cut by the U.S. Federal Reserve.

Hungary’s central bank reduced its rates by 25 basis points yesterday (September 24). The Central Bank of Hungary (MNB) said it had reached a “turning point” in June after having cut rates aggressively since the start of the year. Since then – and moving forward – it has said it will only consider rate holds or 25bp cuts. Last month, it held rates.

After a pause in the easing cycle in August, the National Bank (MNB) reduced the base rate by 25 basis points to 6.5% on September 24, in line with projections. The Monetary Council also reduced the overnight deposit rate by the same clip to 5.

Hungary is poised to resume monetary easing after slowing inflation and interest-rate cuts by major global central banks widened policymakers’ room for maneuver.