FX.co ★ Hungary Holds Rate as Expected

The National Bank of Hungary kept its benchmark interest rate unchanged at 5.5% at its September 2026 meeting, in line with expectations. The pause followed four cuts earlier in the year and came against a backdrop of heightened global risks, with ongoing geopolitical tensions continuing to drive up energy prices. Headline inflation ticked up to 1.3% in August from 1.2% in July, remaining below the central bank’s 2%–4% target range. At the same time, gains in the forint helped reduce import costs and improve the inflation outlook. So far this year, the forint has appreciated 5.8% against the euro, supported by Prime Minister Magyar’s commitment to lowering the budget deficit and setting the country on a path toward adopting the single currency.