28 April 2026
At its meeting on 28 April 2026, the Monetary Council reviewed the latest economic and financial developments and decided on the following structure of central bank interest rates with effect from 29 April 2026:
|
Central bank instrument |
Interest rate |
Previous (percent) |
Change (basis points) |
New |
|
Central bank base rate |
|
6.25 |
No change |
6.25 |
|
O/N central bank deposit |
Central bank base rate minus 1.00 percentage point |
5.25 |
No change |
5.25 |
|
O/N collateralised loan |
Central bank base rate plus 1.00 percentage point |
7.25 |
No change |
7.25 |
The primary objective of the Magyar Nemzeti Bank (MNB) is to achieve and maintain price stability. Without prejudice to its primary objective, the MNB preserves financial stability and supports the Government’s economic policy, as well as its policy on environmental sustainability.
Geopolitical tensions have an adverse effect on the global outlook for inflation and growth. Global oil prices and European gas prices are higher compared to levels before the conflict in Iran. Risk premia on domestic assets declined after the parliamentary elections, driven in part by expectations related to EU funds and euro adoption. The forint has appreciated in the recent period. Although exchange rate volatility has decreased since the previous interest rate decision, it remains above its level before the outbreak of the Iran war. Looking ahead, it is key that the improvement in risk premia persists.
The world’s leading central banks and central banks in the CEE region have kept interest rates unchanged in the past month. For this year, markets price rising interest rates from the European Central Bank and unchanged interest rates from the Federal Reserve. Central banks in the region are following a wait-and-see approach regarding monetary policy.
Hungary’s real economy is still characterised by duality; based on incoming macroeconomic data, retail sales continued to grow in February, while industrial production declined. The unemployment rate remains low in an international comparison.
Similarly to last year, the pick-up in domestic economic activity in 2026 is primarily driven by household consumption. High energy prices restrain growth. The capacity-increasing investment projects of recent years support the expansion of industrial exports. The current account balance will temporarily decline this year before a gradual improvement.
In March 2026, inflation rose to 1.8 percent, while core inflation decreased to 1.9 percent. Incoming data were in line with the projection of the March Inflation Report. The increase in the consumer price index was caused by rising fuel prices, which were partly offset by disinflation in tradables and market services. In the early months of the year, corporate price expectations increased slightly but still indicate subdued dynamics. Household inflation expectations decreased.
With the pass-through of high energy prices, inflation will continue to rise this year. However, a stronger forint moderates the rate of price increases. From 2026 Q3 onwards, inflation will be above the tolerance band before a sustainable return to the central bank target in 2027 H2.
In the uncertain global economic environment, a stability-oriented approach to monetary policy and the continued, cautious analysis of the inflation outlook are warranted. Maintaining the stability of domestic financial markets, especially that of the foreign exchange market, is crucial in anchoring inflation expectations and thus achieving price stability.
The Monetary Council left the base rate unchanged at 6.25 percent at today’s meeting. The O/N deposit rate and the O/N lending rate also remained unchanged, at 5.25 percent and 7.25 percent, respectively. The central bank will continue to ensure positive real interest rates in order to achieve the inflation target in a sustainable manner.
A careful and patient approach to monetary policy remains necessary due to inflation risks arising from geopolitical tensions and the uncertain financial market environment. The Monetary Council is committed to the achievement of the inflation target in a sustainable manner. Maintaining tight monetary conditions is warranted. The Council is constantly assessing the impact of incoming macroeconomic data and financial market developments on the inflation outlook, based on which it will take decisions on the level of the base rate in a cautious and data-driven manner.
The abridged minutes of today’s Council meeting will be published at 2 p.m. on 13 May 2026.
MAGYAR NEMZETI BANK
Monetary Council