FX.co ★ NBH Leaves Monetary Policy Unchanged for 6th Month

In March, the National Bank of Hungary decided to maintain its key interest rate steady at 6.50% for the sixth consecutive meeting, as the country continued to experience inflationary pressures. These pressures are largely attributed to rising costs in food and services. The overnight deposit rate by the central bank and the collateralized loan rate also remained fixed at 5.5% and 7.5%, respectively. This decision met market predictions, with analysts seeing minimal chances for significant interest rate reductions this year and only a potential 25 basis point decrease by the end of 2025. Consumer price inflation rose to 5.6% in February, marking the highest rate since November 2023, while core inflation reached a 14-month peak at 6.2%, both exceeding the central bank's 3% target.