Hungary’s central bank delivered its third consecutive interest rate cut after inflation fell to the lowest level in a decade. The National Bank of Hungary reduced the benchmark rate by a quarter-point to 5.5% on Tuesday, matching the estimate of all 20 economists in a Bloomberg survey. Governor Mihaly Varga will hold a briefing at 3 p.m., when a statement will also be published.

The rate cut reflects easing price pressures across the economy, with inflation now at its weakest point since 2016. Policymakers signaled confidence in sustaining disinflation without jeopardizing growth. The move aligns with broader regional trends of monetary easing in Central Europe.

Analysts note the decision underscores the central bank’s responsiveness to evolving data. The cut brings the policy rate to its lowest level since early 2023. Hungary’s inflation has declined steadily over the past year, driven by lower energy and food costs.

The central bank remains vigilant but sees room for further adjustments if trends persist.