Hungary Leaves Base Rate Unchanged for 10th Month

The National Bank of Hungary held its key interest rate unchanged at 6.50% for the tenth consecutive meeting on July 22, in line with market expectations.

The overnight deposit and collateralized loan rates also stayed at 5.5% and 7.5%, respectively.

The economic growth outlook deteriorated as annual GDP growth stalled year-on-year in Q1 2025, yet inflation risks remain skewed to the upside.

Headline inflation accelerated to 4.6% in June, surpassing the central bank’s 4% tolerance ceiling and well above its 3% target.

The forint has stabilized around 400 per euro, appreciating 3.1% this year — the second-best performance among emerging market currencies.

Given the persistent inflationary pressures amid a weakening growth outlook, the National Bank of Hungary is likely to maintain a cautious stance on monetary policy in the near term.