FX.co ★ Hungary Holds Rate as Expected

The National Bank of Hungary left its base interest rate unchanged at 6.25% at its May 2026 meeting, in line with market expectations, keeping benchmark borrowing costs at their lowest level in four years. The decision, which had been signaled earlier by the central bank, reinforces expectations of looser monetary policy later this year. NBH Governor Varga said the inflation outlook is favorable, supported by the recent appreciation of the forint following the election of Peter Magyar as Prime Minister. This outlook stands in sharp contrast to that of other EU countries, where interest rates are likely to rise as the war in the Middle East constrains energy supplies and drives up prices.