The Monetary Council of the Magyar Nemzeti Bank (MNB) kept the base rate at 6.25 % on 26 May 2026, alongside an unchanged policy corridor of 5.25 % for the overnight (O/N) deposit rate and 7.25 % for the O/N collateralised loan, judging that a markedly improved but still fragile inflation outlook and persisting geopolitical risks warrant a “careful and patient” stance to safeguard price and financial stability. After a single 25 bp cut in February that lowered the base rate from 6.50 % to 6.25 %, all subsequent meetings have maintained that level. The central bank will continue to secure positive real interest rates and highlighted the importance of FX-market stability for anchoring expectations. April headline inflation eased to 2.1 % and core inflation to 2.2 %, both near the lower edge of the tolerance band, while GDP expanded 1.7 % y/y in 2026 Q1 amid rising retail sales and industrial output and a still-low unemployment rate. A stronger forint and extended fuel-price and margin caps are tempering price pressures, although high global energy and commodity prices pose upside risks; domestic risk premia have fallen since the March Inflation Report, helped by improved sentiment over EU funds, fiscal prospects and potential euro adoption. The Council noted that oil and European gas prices remain elevated due to tensions surrounding Iran, and market expectations now price ECB and CEE rate increases later this year while US rates are seen steady, pushing developed-market long-t
National Bank of Hungary2026-05-26
Magyar Nemzeti Bank keeps base rate unchanged at 6.25 %
Hungary’s Monetary Council kept the Magyar Nemzeti Bank base rate at 6.25 % and the policy corridor at 5.25 %–7.25 %, citing a still-fragile inflation outlook and geopolitical risks. It will maintain positive real rates and support forint stability, with April inflation down to 2.1 %-2.2 % and future moves to be guided by incoming data and the June Inflation Report.