MNB Monetary Council Leaves Base Rate Unchanged

At its meeting on this Tuesday, the Monetary Council of the National Bank of Hungary (MNB) reviewed the latest economic and financial developments and decided not to change the central bank interest rates, leaving its base rate at 6.5%.

According to the press release after the meeting, the primary objective of the National Bank of Hungary (MNB) is to achieve and maintain price stability. Without prejudice to its primary objective, the National Bank of Hungary preserves financial stability and supports the Government’s economic policy, as well as its policy on environmental sustainability.

Ongoing trade and geopolitical tensions continue to create an uncertain global economic environment. The trade agreements concluded in the past months somewhat improved the global growth outlook. However, the economic growth of Germany, Hungary’s most important foreign trade partner, remained subdued.

The increasing fragmentation of international supply chains due to tariffs, the further rise of global food prices, and the continued high price dynamics in market services still pose upside risks to global inflation. Energy prices have remained broadly unchanged since the previous interest rate decision.

International financial markets continue to react sensitively to trade and geopolitical developments. At its September meeting, the Federal Reserve reduced the target range for the federal funds rate by 25 basis points. The interest rate path expected from the central bank shifted downwards. Markets price in two additional 25 basis point interest rate cuts until the end of the year. The European Central Bank left its policy rates unchanged in September. Market expectations for the euro interest rate path shifted slightly upwards. Pricings do not indicate further interest rate cuts for this year. Over the past month, among the regional central banks, the Polish central bank cut the key interest rate by 25 basis points.

Hungarian economy remained subdued in 2025 Q2 as well. The growth of the GDP was primarily driven by the robust growth of household consumption, while the decline in investments continued. Besides the prolonged moderate economic growth, labour market tightness eased. At the same time, the unemployment rate remains historically low, the press statement says.