The Magyar Nemzeti Bank (MNB) has lowered its benchmark interest rate from 6.25% to 6.00%, effective June 24, 2026. This move is part of a broader strategy to stimulate economic activity by reducing borrowing costs for consumers and businesses. Currently, mortgage offers in the market are showing Annual Percentage Rates (APRs) ranging from 6% to 7%, with some fixed-rate loans starting as low as 6%. Personal loan rates, which traditionally range from 12% to 22%, are expected to potentially dip below 10% if the trend of rate cuts continues. The O/N deposit and lending rates now stand at 5.00% and 7.00%, respectively, reflecting the new base rate.
Key Takeaways
The MNB’s rate cut suggests a shift towards easing borrowing conditions in Hungary.
Current mortgage APRs range from 6% to 7%, with potential for further reductions.
Personal loan rates could fall below 10% if the central bank continues its rate-cutting path.
