Central Bank - Diplomacy & Trade

Hungary’s Growth Stalls as Inflation Returns to Target Range

D&T — Fri, 06 Feb 2026 05:44:20 +0000

Hungary’s economic growth slowed to a crawl at the end of 2025, with fourth-quarter GDP expanding just 0.2% quarter-on-quarter. This tepid finish dragged full-year growth down to approximately 0.4%, well below initial projections and even weaker than Hungary’s 2024 performance. Despite ramped-up government spending late in the year, the stimulus failed to meaningfully boost overall […]

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Hungary’s Central Bank Signals Much Lower Inflation Ahead

D&T — Fri, 19 Dec 2025 05:25:27 +0000

Hungary’s central bank is preparing the public for an inflation path far gentler than it had forecast just a few months ago. In its newly released quarterly Inflation Report, the Magyar Nemzeti Bank (MNB) says it now expects significantly slower price growth in 2026, helped by falling global food prices, easing energy costs, and a […]

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Hungary’s Economy Stares Down Another Tough Year

D&T — Fri, 05 Dec 2025 04:57:18 +0000

Hungary is heading into 2026 with the uncomfortable feeling of déjà vu: another year where growth is possible on paper but hard to spot in real life. A fresh research note from ING Bank Hungary warns that the country’s disappointing third-quarter performance in 2025 has exposed structural weaknesses that are likely to drag on next […]

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Hungary’s Housing Market Is Sizzling but Strained

D&T — Fri, 21 Nov 2025 06:19:15 +0000

In a market where real estate prices were already climbing faster than anywhere else in the European Union, Hungary’s residential property boom accelerated even more in recent months and that has raised serious red flags for the country’s central bank. According to preliminary data from the central bank, home prices in Budapest surged by 30% […]

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Hungary’s Central Bank Defies Pressure to Cut Rates

D&T — Fri, 10 Oct 2025 05:22:24 +0000

Hungary’s central bank will wait for inflation to decline in a sustainable manner before cutting interest rates. Policy makers are under growing pressure from the government to lower borrowing costs. Hungary’s central bank will wait for inflation to decline in a sustainable manner before cutting interest rates. Policy makers are under growing pressure from the […]

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Stable Forint Seen as Cornerstone of Hungary’s Economic Growth

D&T — Fri, 05 Sep 2025 03:49:34 +0000

Hungary’s central bank governor Mihály Varga underscored the importance of currency stability, calling it essential for curbing inflation and laying the foundation for stronger growth. “Hungary’s economic convergence can’t be based on currency devaluation,” Varga said at an annual economics forum in Veszprém, stressing that the forint’s impact on prices has doubled compared to a […]

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Hungarian Business Confidence Sinks to Five-Year Low as Growth Outlook Dims

D&T — Fri, 25 Jul 2025 06:14:56 +0000

Hungary’s business sentiment took a sharp hit in July, plunging to levels last seen during the pandemic, in a further indication that the country’s economy may be teetering on the edge of another recession. Hungary’s business sentiment took a sharp hit in July, plunging to levels last seen during the pandemic, in a further indication […]

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Hungarian Wage Growth Slows Sharply, Deepening Risks for Recovery

D&T — Fri, 18 Jul 2025 04:27:25 +0000

Hungary’s economic recovery faced a fresh setback in May as wage growth fell to its slowest pace in more than two years, signaling weakening household purchasing power and raising doubts about a consumer-driven rebound ahead of the 2026 election. Data released this week by the Hungarian Central Statistical Office showed that average gross wages rose […]

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Hungarian Inflation Persists Despite Government Interventions

D&T — Fri, 11 Jul 2025 04:03:42 +0000

Hungary continues to face entrenched inflationary pressures, with new data confirming that price growth remains stubbornly high despite regulatory efforts by the government. Analysts expect this volatile trend to continue in the months ahead. Inflation accelerated in June, driven by rising costs in food, household energy, and services—even as Prime Minister Viktor Orbán’s administration enforced […]

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Hungarian Inflation Ticks Up in May Despite Government Measures

D&T — Fri, 13 Jun 2025 04:21:14 +0000

Hungary’s inflation rate picked up in May for the first time in three months, highlighting the persistent challenge facing monetary policymakers even as headline figures suggest only modest price growth. The Central Statistical Office reported an annual inflation rate of 4.4%, up from 4.2% in April and slightly above economists' expectations. On a monthly basis, […]

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Hungary Keeps Interest Rates Steady as Orbán Hints at Further Delays in Recovery

D&T — Fri, 30 May 2025 04:16:44 +0000

Hungary’s central bank has decided to maintain its key interest rate at 6.5%, marking the eighth consecutive month without any changes. This move comes as policymakers remain focused on combating persistent inflation expectations, despite mounting challenges for the country’s export-driven economy. The decision to hold the benchmark rate steady was in line with expectations, with […]

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Investigation Uncovers Massive Losses and Mismanagement at Hungarian Central Bank Fund

D&T — Fri, 28 Mar 2025 05:24:59 +0000

Hungary’s State Audit Office filed a complaint against a controversial foundation established by the central bank claiming years of financial mismanagement and opaque dealings. The police are investigating the case which involves funds in excess of $1 billion. The foundation, Pallas Athéné Domus Meriti (PADME), set up shortly after former Hungarian National Bank (MNB) Governor […]

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Hungary Faces Inflation Surge as Prices Rise Across Key Sectors

D&T — Fri, 14 Feb 2025 05:14:26 +0000

Hungary's inflation rate surged unexpectedly in January, driven by sharp increases in fuel, food, and service costs, posing fresh challenges for monetary policy. The latest data indicates mounting price pressures, with core inflation also worsening, raising concerns over the central bank’s ability to ease interest rates in the near future. Official figures show that Hungary’s […]

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Hungarian Inflation Surges, Breaching Central Bank Limits

D&T — Fri, 17 Jan 2025 07:27:29 +0000

Hungarian inflation surged in December, with rising fuel and food costs driving consumer prices beyond expectations. The increase presents challenges for monetary policy and has stoked concerns over perceived inflation, as sharp price hikes in key items weigh on household budgets. The Hungarian Central Statistical Office (HCSO) reported a 4.6% annual increase in consumer prices […]

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Hungary's Next Central Bank Chief Commits to Independence

D&T — Fri, 20 Dec 2024 09:08:49 +0000

Hungary is setting the stage for a leadership change at the helm of its central bank, as Finance Minister Mihály Varga prepares to step into the role of governor for the National Bank of Hungary. At his parliamentary confirmation hearing, Varga struck a reassuring tone, emphasizing his commitment to the central bank’s independence and the […]

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