Hungarian National Bank keeps interest rate at 6.5%

With the recent decision, the lower limit of the interest rate corridor, the overnight deposit rate, remains at 5.5%, while the upper limit—the overnight lending rate—is set at 7.5%. The last change to the base rate occurred in September when it was reduced by 25 basis points. Since that adjustment, there have been no further changes.

Economic Context

According to economic analysts, the stability of the forint and the uncertain international environment present challenges that prevent the central bank from lowering the interest rates further. Ongoing questions surrounding U.S. trade policies under former President Donald Trump, which could potentially affect the European Union with new tariffs, add to the precarious international economic landscape. Recently, the President of the European Central Bank noted the need for Europe to prepare for these possible trade tariffs.

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