Hungary faces key week of interest rate and economic data releases

Hungary faces a significant week for economic data, headlined by an interest rate decision from the Magyar Nemzeti Bank (MNB) Monetary Council on Tuesday. Analysts anticipate a continuation of the interest rate reduction series, following the July 22 decision to lower the base rate by 25 basis points to 5.75 percent.

Additional key data releases include second-quarter investment statistics and July household sector reports from the Central Statistical Office (KSH). The Ministry of Finance (PM) is also scheduled to publish detailed information regarding the central subsystem of the state budget as of the end of July.

Previous data indicated that investment volume decreased by 1.3 percent in the first quarter on a seasonally adjusted basis compared to the previous year. Regarding the state budget, preliminary figures from August 10 showed a surplus of 524.3 billion forints in the central subsystem for July, marking a 537.1 billion forint improvement year-on-year. However, the central subsystem recorded a deficit of 2,857.9 billion forints in the first seven months of the year, representing 67.7 percent of the annual deficit target.