FX.co ★ Hungary Keeps Monetary Policy Unchanged

The National Bank of Hungary kept its benchmark interest rate unchanged at 6.25% at its April 2026 meeting, as widely expected, marking a second consecutive pause in its easing cycle. The decision underscores a cautious policy stance amid escalating geopolitical tensions—particularly the conflict involving Iran—which has driven up global energy prices and heightened upside risks to inflation. This caution persists even though domestic inflation remains below the central bank’s 3% target and the forint has strengthened following the April elections. Annual inflation accelerated to 1.8% in March from 1.4% in February, but stayed close to its lowest level in nine years. At the same time, uncertainty surrounding domestic fiscal policy is keeping the central bank on hold, as policymakers await detailed government measures to tackle a sizeable budget deficit.