The National Bank of Hungary (NBH) cut its base rate by another 25 basis points to 6.5% on Tuesday, aided by a fall in inflation and last week's larger-than-usual cut by the U.S. Federal Reserve.

After a pause in the easing cycle in August, the Hungarian National Bank (MNB) reduced the base rate by 25 basis points to 6.5% on September 24, in line with projections. The Monetary Council also reduced the overnight deposit rate by the same clip to 5.

Hungary is poised to resume monetary easing after slowing inflation and interest-rate cuts by major global central banks widened policymakers’ room for maneuver.

The National Bank of Hungary (NBH) cut its base rate by another 25 basis points to 6.5% on Tuesday, aided by a fall in inflation and last week's larger-than-usual cut by the U.S. Federal Reserve. The NBH,