Hungary’s central bank has cut its base interest rate to 5.50%, affecting the rate used to calculate interest on late tax payments.
Hungary’s National Tax and Customs Administration (NAV) announced on 25 August 2026 that the Hungarian National Bank reduced its base interest rate from 5.75% to 5.50%, effective 26 August 2026.
The rate was previously cut from 6.00% to 5.75% on 22 July 2026.
The base rate is used to calculate interest on late tax payments, with the applicable rate set at 5 percentage points above the base rate in effect on the original payment due date.
The monetary easing is driven by weaker-than-expected inflation, which fell to 1.2% in July, while core inflation declined to 1.9%.
