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Reading: MNB holds base rate at 5.5% as inflation sits at 1.6%
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MacroHerald > Latest News > Economy > Central Banks > MNB holds base rate at 5.5% as inflation sits at 1.6%
Central Banks

MNB holds base rate at 5.5% as inflation sits at 1.6%

Enver Adıgüzel
Last updated: 20 October 2026 12:25
Enver Adıgüzel - Editor and Publisher
11 minutes ago
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The Monetary Council of the National Bank of Hungary left its base rate unchanged at 5.5 percent on Tuesday, as expected. The bank had already paused after a mini easing cycle over the summer.

Contents
  • External pressures build
  • Budget and the Governor’s briefing

Consumer price inflation in Hungary stood at 1.6 percent in September, still below the central bank’s target. The bank decides month by month on the basis of incoming data.

External pressures build

The international backdrop has turned less favourable since late summer. Persistently high energy prices pose a risk to inflation, and several large central banks have responded with rate hikes.

Geopolitical tensions and turbulence in global bond markets have also pushed up risk premiums. Hungary’s policymakers must weigh those pressures against domestic price trends.

Budget and the Governor’s briefing

Prime Minister Magyar Péter presented the government’s 2027 budget on Monday, though some of its details remain unknown. The central bank’s rationale will be published alongside a press conference by Governor Varga Mihály at 15:00.

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Related: Fed's Waller expects more rate hikes if inflation data supports · Bank of Mexico holds key rate at 6.50 percent

Source: Hungarian National Bank

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TAGGED:forexhungaryinflationinterest ratesmnb

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ByEnver Adıgüzel
Editor and Publisher
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Enver Adıgüzel is the editor and publisher of MacroHerald. He holds a degree in Economics from the Faculty of Economics and Administrative Sciences at Kırıkkale University and an MBA. He writes on central bank policy, currencies, government bond markets and the economic data that move them.
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