The Hungarian central bank has reduced the base interest rate from 9.5% to 8.5%, slashing a full percentage point in the first interest rate reduction in six months. This surprised markets which were expecting a 0.5% reduction and comes amid an increasingly stable forint and recession which is easing inflationary pressures.

The Hungarian economy was overwhelmed by the global recession which hit hard earlier this year and currency exchange rates for the forint have declined by around 14% against the euro. The forint has recovered 16% against the euro this year and is currently trading at EUR468.07.

The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.