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Government to Phase Out Rate Freeze Regime After Key Rate Below 10%

HUNGARY
  • Hungary’s government will phase out its interest rate freeze regimes for household mortgages and SME loans once the central bank lowers its key rate below 10%, the Ministry for Economic Development says in a statement.
  • The effective rate is currently at 15% and the central bank plans to lower it to 13% by the end of September.
  • The interest rate freeze on residential mortgages will be maintained until the end of the year, the Economic Development Ministry said, which has already protected some 350,000 families from high interest rates.
  • The government’s aim is to restore the foundations for domestic economic growth so that Hungary can return to its usual growth path next year achieving 4% economic expansion, it added.

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