The Hungarian central bank retained its key interest unchanged again in a bid to preserve stability in prices as well as financial markets amid risks and geopolitical uncertainty.
The Monetary Council of the Magyar Nemzeti Bank, led by Governor Mihály Varga, kept the base rate steady at 6.50 percent, in line with expectations. The previous change in the benchmark rate was a quarter basis points reduction in September last year.
The overnight deposit rate was left unchanged at 5.50 percent and the lending rate at 7.50 percent.
"A careful and patient approach to monetary policy remains necessary due to risks to the inflation environment as well as trade policy and geopolitical tensions," the MNB said. "In the Council's assessment, maintaining tight monetary conditions is warranted."
Consumer price inflation in the country held steady at 4.3 percent for the third straight month in October.
The central bank expects inflation to ease into the tolerance band by the end of the year and slow further at the start of next year.
"The 3 percent inflation target can be achieved in a sustainable manner by ensuring tight monetary conditions," the bank said. "In the current economic situation, maintaining the stability of the foreign exchange market is of key importance in reducing inflation expectations."
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.