Hungary Central Bank Holds Base Rate at 6.25 Percent
The National Bank of Hungary kept its base rate at 6.25 percent on Tuesday. Officials cited global energy risks and fiscal concerns as reasons for the pause.
Hungary kept its base interest rate unchanged at 6.25% on Tuesday. The decision matches expectations from 14 of 15 analysts surveyed by Reuters. Investors are balancing a pro-euro political shift against forecasts that inflation will hit 4.4% by December.
### Why the MNB Is Ignoring a Stronger Forint The Magyar Nemzeti Bank (MNB) prioritized global energy risks over a currency rally following the April 12 election that ended nationalist Prime Minister Viktor Orbán's 16-year rule. The incoming TISZA party, led by Peter Magyar, has a pro-euro stance that boosted the EUR/HUF to 365.50, but policymakers remained cautious.
