Hungary's Central Bank Holds Benchmark Rate at 5.5 Percent: Growth Forecasts Cut as Global Risks Stay Elevated
The National Bank of Hungary (MNB) on October 20 left its benchmark interest rate unchanged at 5.5 percent at its October monetary policy meeting, as expected. The central bank has cut rates four times this year, most recently by 25 basis points in August, from 5.75 percent to 5.5 percent, and also held steady at its September meeting.
Annual inflation edged up to 1.3 percent in August from 1.2 percent in July, below the central bank's June forecasts. At its September meeting, policymakers lowered the medium-term inflation target to 2.5 percent, plus or minus one percentage point, to enter the monetary policy horizon from 2028. Average expected inflation was left unchanged for 2026, raised to 3.1 percent for 2027 and cut to 2.6 percent for 2028.
The economic growth forecasts were lowered to 1.8 percent for 2026, 2.9 percent for 2027 and 2.8 percent for 2028, as extreme drought reduced agricultural output. Policymakers noted that global risks remain elevated, with geopolitical tensions continuing to pressure energy prices. The same day in Budapest, Prime Minister Peter Magyar said the government expects the budget deficit to fall to 2.8 percent of economic output by 2030, below the European Union's 3 percent ceiling, with deficits of 4.9 percent, 4 percent and 3.4 percent planned for the intervening years. (GSM, from Reuters reporting)
Source: GSM · USA (original Chinese edition)
Photo: 位于 Budapest 的匈牙利国家银行大楼，Globetrotter19 摄，CC BY-SA 3.0（Wikimedia Commons）
