The Monetary Council of the National Bank of Hungary decided at a meeting on Monday to lower the base rate by 25 basis points to 5.25 percent, in line with market expectations.
The Council has cut the base rate a combined 425 basis points at each of its meetings since July, bringing it to a historical low.
The decision came a day after the centre-right Fidesz party won a two-thirds majority in the general elections. Analysts said Fidesz’s victory would put Hungary’s next government in a position to carry out sweeping structural reforms, causing the country’s risk premium to fall and the forint to firm.