FX.co ★ Hungary Leaves Base Rate Unchanged for 11th Month

The National Bank of Hungary has kept its key interest rate steady at 6.50% for the eleventh consecutive session as of August 26, aligning with market expectations. Similarly, the overnight deposit and collateralized loan rates remain unchanged at 5.5% and 7.5%, respectively. Preliminary data indicates a modest annual GDP increase of 0.1% in the second quarter of 2025, suggesting a sluggish economic growth. Meanwhile, headline inflation decelerated to 4.3% in July, although it continues to surpass the central bank's 4% tolerance threshold and remains well above the 3% target. Given the ongoing inflationary pressures amid a weakening growth outlook, it is anticipated that the National Bank of Hungary will adopt a cautious approach to monetary policy in the near future.