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Interest Rate Cap to Be Maintained Until Key Rate Falls Below 10%

HUNGARY
  • The government will extend a cap on household and corporate loans of small- and medium-sized companies beyond its June 30 expiry, Cabinet Minister Gergely Gulyas told reporters in a briefing of the most recent government meeting.
  • The cap will be maintained until the central bank’s key interest rate drops below 10%, Gulyas said (note the O/N deposit rate currently stands at 18%).
  • In addition, Gulyas told reporters that the government is currently drafting its 2024 budget, which will target “around 4%” economic growth, a 2.9% GDP shortfall and 6% inflation. Cabinet will file the budget draft to parliament on May 30.

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