Hungarian Central Bank Leaves Base Rate Unchanged

At its meeting this Tuesday, the Monetary Council of the National Bank of Hungary (MNB) reviewed the latest economic and financial developments and – in line with its stability-oriented approach – left the base rate unchanged at 6.50% with effect from March 26, 2025. The O/N deposit rate and the O/N lending rate also remained unchanged, at 5.50% and 7.50%, respectively.

The Monetary Council has said in a statement that it is committed to the achievement of the inflation target in a sustainable manner. The inflation path this year is likely to be higher than earlier expected, and achieving the target has been delayed. A careful and patient approach to monetary policy remains necessary due to upside risks to inflation as well as trade policy and geopolitical tensions. In the Council’s assessment, the uncertain international environment and the outlook for inflation warrant the maintenance of tight monetary conditions.

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

Due to prolonged geopolitical conflicts and intensifying trade policy tensions, the global economic environment continues to be uncertain. In the US, the risk of a slowdown in economic activity has emerged. In the EU, the easing of fiscal rules and the programs for expenditure hikes announced in recent weeks may boost economic growth which has been subdued for years, the statement says.