Hungary Interest Rate

The National Bank of Hungary kept its key interest rate steady at 6.50% during its February 2025 meeting, as widely anticipated, amid growing concerns over inflationary pressures. In January, the central bank adopted a more hawkish stance, tightening its monetary policy guidance following a surge in inflation, effectively ruling out rate cuts in the near future. Consumer price inflation accelerated to 5.5% in January, the highest level since December 2023, while core inflation climbed to a 12-month high of 5.8%, both remaining well above the central bank's 3% target. Additionally, the interest rates on overnight central bank deposits and overnight collateralized loans were left unchanged at 5.5% and 7.5%, respectively.