NBH to hold steady at 6.50% as inflation risks linger – BBH

National Bank of Hungary is widely expected to keep rates steady at 6.50%, BBH FX analysts report.

Hungary’s Central Bank set for 8th straight rate hold

"At the last May 27 meeting, the bank decided unanimously to leave the base rate unchanged at 6.50%, marking the 8th consecutive hold since September 2024. The bank also showed no signs of departing from its hold stance."

"The bank reiterated that 'maintaining tight monetary conditions is warranted' while Governor Varga warned that rates could remain at the current level for a 'an extended period.' Nevertheless, the swaps market continues to price in 50bps of easing over the next twelve months.