2025.04.2914:35:03UTC+00Hungary Leaves Base Rate Unchanged for 7th Month

The National Bank of Hungary opted to keep its primary interest rate at 6.50% during its meeting in April, marking the seventh time this decision has been made consecutively. This rate remains the highest within the European Union and aligns with market expectations. Additionally, the rates for overnight central bank deposits and collateralized loans were held steady at 5.5% and 7.5%, respectively. The central bank highlighted that tariffs imposed by the United States, along with possible retaliatory measures from major global economies, contribute to an uncertain macroeconomic forecast. This uncertainty supports the rationale for maintaining current interest rates. Policymakers pointed out that while tariffs and the depreciation of the forint against the euro could elevate inflationary pressures, the anticipated decrease in energy prices, resulting from diminished global demand, may help alleviate cost burdens for domestic businesses. Recent data revealed that consumer inflation dropped to 4.7% in March, and core inflation also declined to 5.7%.