Hungary Holds Rates Steady to Curb Inflation Risks

2025-06-24 12:50 By Isabela Couto 1 min. read

The National Bank of Hungary kept its benchmark interest rate unchanged at 6.50% for the ninth consecutive meeting in June, matching market expectations.

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

The decision reflects efforts to anchor inflation expectations and preserve stability amid heightened geopolitical tensions.

Headline inflation rose to 4.4% in May, breaching the central bank’s 3% target and its 1 percentage point tolerance band.

Caution is expected to persist, with Economy Minister Marton Nagy warning that the US bombing of Iranian nuclear sites could raise inflationary pressures through higher transit costs and tighter energy supply.



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