# National Bank of Hungary Cuts Policy Rate to 5.50% as Analysts Target EUR/HUF 350 and Yield Easing

> The National Bank of Hungary lowered its policy rate by 25 basis points to 5.50%, with ING analysts predicting further easing alongside a potential rally in Hungarian assets driven by long-term euro adoption prospects.

**Type:** article · **Category:** Market · **Published:** 2026-08-26 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/market/national-bank-of-hungary-ne-nitigata-dara-ghatakara-5-50-ki-vishleshakon-ka-eur-huf-350-aura-banda-yilda-men-giravata-ka-anumana-22441 · **Language:** English
**Tags:** National Bank of Hungary, Hungarian Forint, ING, Forex Market, US Dollar, Gold, Hyperliquid HYPE

The National Bank of Hungary has formally executed a 25 basis point reduction in its benchmark policy interest rate, bringing the official rate down to 5.50%. This latest decision comes as market participants evaluate long-term monetary trajectories across Central Europe. Financial analysts at ING suggest that this rate-cutting cycle could eventually see the benchmark rate reach a terminal level of 4.75%. Alongside the central bank's policy adjustments, market sentiment around Hungarian assets is being actively sustained by ongoing narratives surrounding potential future euro adoption and strategic shifts in official inflation targets. Meanwhile, global financial markets remain on high alert as investors await major macroeconomic data releases from the United States, including the Personal Consumption Expenditures Price Index.

## Hungary Central Bank Eases Policy as Economists Map Terminal Rate Path
The decision by the National Bank of Hungary to lower its benchmark rate by 25 basis points moves the key rate to 5.50%. According to Peter Virovacz, Chief Economist at ING in Hungary, the terminal interest rate for this easing cycle is expected to settle at 4.75%. However, despite delivering the expected rate reduction, the central bank provided minimal explicit forward guidance during its official announcement. Market observers note that policymakers appear to be maintaining a flexible stance dependent on evolving economic conditions.

## Euro Adoption Prospects and Inflation Target Shifts Drive Asset Sentiment
Investor enthusiasm for Hungarian financial instruments is drawing strength from structural narratives, notably the long-term prospect of Hungary aligning with and eventually joining the euro area. Furthermore, potential future adjustments aimed at anchoring the central bank's inflation target around 2.00% are providing structural support. Market commentators draw parallels to the significant market rally experienced by South African assets last year when the South African Reserve Bank successfully pushed to lower its inflation target from 4.50% to 3.00%, an agreement finalized in November 2025.

## ING Foresees Strengthening Forint and Lower Hungarian Government Bond Yields
ING analyst Chris Turner highlights optimistic year-end projections for Hungarian financial assets. The firm forecasts the EUR/HUF exchange rate to drop to 350 by the end of the year, compared to current trading levels hovering around 360, signaling appreciation for the Hungarian Forint. Concurrently, yields on ten-year Hungarian government bonds are projected to ease down to 4.75% from their present levels near 5.43%, reflecting improved sovereign debt valuation expectations.

## Global Forex Markets Consolidate Ahead of Crucial US Inflation Release
Broader foreign exchange markets are exhibiting tight consolidation patterns ahead of vital macroeconomic updates. The GBP/USD pair traded with a slight soft bias below 1.3650 during Wednesday's European session, retracing part of its previous sharp gains while staying close to a six-month high achieved last Friday. Simultaneously, EUR/USD held lower near 1.1650 as the US Dollar recorded a modest recovery underpinned by profit-taking activities and ongoing geopolitical concerns in the Middle East. Traders are awaiting second-quarter US GDP revisions alongside the July PCE inflation data.

## Gold Holds Below $4,650 while Hyperliquid Token Extends Rapid Gains
In precious metals markets, spot gold traded with modest losses below the $4,650 mark heading into the European session on Wednesday, maintaining a tight range without strong bearish momentum. The slight firming of the US Dollar ahead of key inflation figures created mild headwinds for bullion. Investors are also monitoring potential interest rate cues from Federal Reserve Chair Kevin Warsh's scheduled remarks at the Jackson Hole Symposium on Friday. In digital asset markets, Hyperliquid (HYPE) surged 4%, building on a 43% gain from the previous week toward new record highs above $83.30. The exchange platform reported daily ETF net inflows exceeding $5 million over each of the past two days and daily revenues topping $2.75 million across the last seven days.

## US PCE Price Index Expectations and Federal Reserve Policy Trajectory
The United States Bureau of Economic Analysis is scheduled to publish July Personal Consumption Expenditures Price Index metrics on Wednesday at 12:30 GMT. As the primary inflation gauge monitored by the Federal Reserve, the release is expected to show that underlying consumer price pressures remain elevated, tracking well above the central bank's 2.0% annual inflation target.

## What this means for you
**For Global Investors:** Central bank interest rate cuts and upcoming inflation metrics may drive increased volatility across currency and government bond markets.

**For Crypto and Commodity Traders:** Key US PCE inflation figures and Federal Reserve policy updates will directly influence price movements in gold and digital assets like HYPE.

## Questions & Answers

### 1. By how much did the National Bank of Hungary cut its policy rate?
The central bank reduced its benchmark interest rate by 25 basis points, lowering it to 5.50%.

### 2. What is the projected terminal rate according to ING analysts?
Chief Economist Peter Virovacz expects the terminal policy rate in Hungary to settle at 4.75%.

### 3. What are the year-end forecasts for the EUR/HUF exchange rate and bond yields?
ING forecasts EUR/HUF to fall to 350 from around 360, while 10-year Hungarian government bond yields are projected to drop to 4.75% from 5.43%.

### 4. When is the US PCE inflation data scheduled for release?
The US Bureau of Economic Analysis is scheduled to publish the July PCE Price Index on Wednesday at 12:30 GMT.

### 5. How has the Hyperliquid (HYPE) token performed recently?
Hyperliquid rose 4% toward record highs above $83.30, following a 43% gain the previous week, supported by over $5 million in daily ETF inflows.

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