Hungary Interest Rate

The National Bank of Hungary kept its key interest rate at 6.50% for the 14th consecutive meeting on November 18, in line with market expectations. Acording to the central bank, ongoing trade and geopolitical tensions continue to create an uncertain global environment, and European growth outlook remains subdued. Also, rising supply chain fragmentation and high service price dynamics pose inflation risks. The ECB held rates steady, with no further cuts expected. In October, inflation stayed at 4.3%, while core inflation rose to 4.2%. Price restrictions helped reduce inflation, but high price indices persisted in sectors outside their scope. The forint has strengthened since early 2025, easing purchase prices, while corporate and household inflation expectations remain high, though slightly lower. The Monetary Council emphasized a cautious, but tight approach to monetary policy.