Interest Rate in Hungary

Hungary - Interest Rate
MNB stands pat in January
At its 24 January meeting, the Monetary Council of the Hungarian National Bank (MNB) left its base rate unchanged at 13.00% for the fourth consecutive meeting. Moreover, the Bank left the overnight deposit rate and the overnight collateralized lending rate unchanged at 12.50% and 25.00%, respectively.
The Bank reiterated that it would keep interest rates stable for an extended period. It expects that the aggressive tightening cycle, which ended in October, will anchor inflation expectations. This, together with cooling external price pressures, cooling domestic demand and a fading base effect should bring inflation within the Bank’s target range of 3.0% plus or minus one percentage point in 2024. That said, headline inflation accelerated to 24.5% in December from 22.5% in November, moving further above the Bank’s target. A faster increase in prices for fuels was behind the acceleration.
Looking ahead, the Bank sees the current rate level as adequate to manage inflation risks. The MNB expects inflation to decline gradually in H1 2023 and more significantly in the second half of the year. The Bank reiterated that it would keep monetary conditions tight until “inflation expectations are anchored and the inflation target is achieved in a sustainable manner”.
Commenting on the release, Orsolya Nyeste, analyst at Erste, stated:
“We continue to think that at the March rate-setting meeting - provided that supportive market environment remains and the inflation peak pasts - there would be room for the central bank to carry out normalization steps via approaching or maybe merging the one-day depo rate and the policy rate. However, the monetary easing process should only accelerate in H2, in parallel with the expected continuous decline of inflation. The policy rate might be reduced to 9-10% by the year-end, in our view.”
The next monetary policy meeting is scheduled for 28 February.
FocusEconomics Consensus Forecast panelists are still assessing the latest developments.
Hungary - Interest Rate Data
2015 | 2016 | 2017 | 2018 | 2019 | |
---|---|---|---|---|---|
Policy Interest Rate (%) | 1.35 | 0.90 | 0.90 | 0.90 | 0.90 |
Hungary Interest Rate Chart

Source: National Bank of Hungary.
Hungary Facts
Value | Change | Date | |
---|---|---|---|
Bond Yield | 2.08 | 0.0 % | Dec 31 |
Exchange Rate | 295.1 | -0.68 % | Jan 01 |
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Economic News
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Hungary: Economic sentiment ticks up in January
January 31, 2023
The GKI economic sentiment index, a composite indicator, rose to minus 20.5 in January from minus 20.8 in December.
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Hungary: MNB stands pat in January
January 25, 2023
At its 24 January meeting, the Monetary Council of the Hungarian National Bank (MNB) left its base rate unchanged at 13.00% for the fourth consecutive meeting.
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Hungary: Inflation comes in at highest level since March 1996 in December
January 16, 2023
Inflation rose to 24.5% in December from November’s 22.5%.
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Hungary: Industrial output records slowest expansion since October 2021 in November
January 16, 2023
According to a second estimate by the Statistical Institute, industrial output grew 0.8% year on year in November (October: +5.0% yoy).
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Hungary: Economic sentiment improves somewhat in December
December 23, 2022
The GKI economic sentiment index, a composite indicator, rose to minus 21.3 in December from minus 22.5 in November, which had marked the lowest reading in 23 months.