Hungary Interest Rate

The National Bank of Hungary held its key interest rate unchanged at 6.50% for the thirteenth consecutive meeting on October 21, the highest in the EU and in line with market expectations. The overnight deposit and collateralized loan rates also remained at 5.5% and 7.5%. Headline inflation stayed at 4.3% for the second consecutive month in August, above the central bank’s 2–4% target range. The domestic economy shows mixed performance, with slower retail growth, declining industrial and construction output, but a rebound in order volumes. The Magyar Nemzeti Bank (MNB) expects growth to gradually accelerate from 2026, driven mainly by stronger exports and investment. Externally, ongoing trade tensions and geopolitical risks weigh on the global outlook. In the near term, despite government pressure to cut rates, the central bank emphasized a cautious and patient approach, and markets widely expect no rate cuts for the rest of the year.