Hungarian banks slash deposit rates following MNB rate cuts

The Magyar Nemzeti Bank (MNB) has lowered its base rate by a total of 0.75 percentage points since May, bringing it to 5.75%. In response, Hungarian banks have begun reducing the interest rates on retail forint deposits. The typical reduction ranges from 0.25 to 0.5 percentage points. For example, Gránit Bank cut the rate on its 6‑month KamatMax deposit to 5.75% and its simple 6‑month product to 3%. eBank kept its 3‑month promotional rate at 7% for customers using the mobile app, while its combined investment‑linked deposit remains at 8% for a three‑month term. MBH Bank lowered the annual rate on its 12‑month promotional deposit to 4.75% from July 27 and left its 3‑month offer unchanged at 7%. MagNet Bank reduced its promotional Prizma rates to 6.07% (3‑month) and 5.03% (6‑month). Analysts expect at least one more rate cut from the central bank in the near term. The changes affect roughly 86% of the 14.8 trillion forint household deposit pool, which is largely held in demand and savings accounts.