Hungary Keeps Monetary Policy Unchanged

2026-04-28 12:16 By Luisa Carvalho 1 min. read

The National Bank of Hungary left its benchmark rate unchanged at 6.25% in its April 2026 meeting, as widely anticipated, marking the second consecutive hold.

The decision reflects a cautious stance amid rising global risks, including geopolitical tensions related to the Iranian conflict, which have lifted energy prices and increased inflation pressures.

Meanwhile, uncertainty over domestic fiscal policy keeps the central bank in a wait-and-see position, with authorities awaiting concrete government plans to address a sizeable budget deficit.

This was despite domestic inflation remaining below the central bank’s 3% target and the forint appreciating following the April elections.

The annual inflation quickened to 1.8% in March from 1.4% in the previous month, but remained close to its lowest level in nine years.



News Stream
Hungary Keeps Monetary Policy Unchanged
The National Bank of Hungary left its benchmark rate unchanged at 6.25% in its April 2026 meeting, as widely anticipated, marking the second consecutive hold. The decision reflects a cautious stance amid rising global risks, including geopolitical tensions related to the Iranian conflict, which have lifted energy prices and increased inflation pressures. Meanwhile, uncertainty over domestic fiscal policy keeps the central bank in a wait-and-see position, with authorities awaiting concrete government plans to address a sizeable budget deficit. This was despite domestic inflation remaining below the central bank’s 3% target and the forint appreciating following the April elections. The annual inflation quickened to 1.8% in March from 1.4% in the previous month, but remained close to its lowest level in nine years.
2026-04-28
Hungary's Central Bank Holds Rates
The National Bank of Hungary held its benchmark rate at 6.25% in March 2026, as expected. The decision comes at the last policy meeting before April elections as market turmoil has left Hungary's assets among the most exposed globally. Policymakers cut rates last month after holding steady for nearly 18 months. Despite inflation falling below the central bank's target in February, upheaval in global energy markets from the Iran conflict has shifted rate expectations, with money markets pricing monetary tightening ahead. Traders are pricing potential hikes as landlocked Hungary faces an oil flow outage from Russia just as the Middle East crisis hits global supplies.
2026-03-24
Hungary Cuts Key Interest Rate as Inflation Falls
The National Bank of Hungary cut its benchmark interest rate by 25 basis points to 6.25% at its February 2026 meeting, as markets expected, marking its first rate cut in nearly 18 months. Annual headline inflation fell to 2.1% from 3.3% the prior month, dipping below the central bank’s 3% target for the first time in five years. Services inflation, which Governor Mihaly Varga has called “decisive” for monetary easing, eased to 5%. Investors will now watch for signals on whether this cut signals the start of a broader easing cycle.
2026-02-24