Hungarian Central Bank Holds Rates Steady, Lowers Inflation Target and Increases Policy Meetings

The Hungarian Central Bank (MNB) decided to keep its key interest rate unchanged at 5.50%, according to FX Street. The bank also lowered its medium-term inflation target to 2.5%, effective from 2028, while slightly raising its inflation forecast for 2027.

In addition to these changes, the MNB announced it will hold eight policy meetings per year, an increase aimed at enhancing its responsiveness to economic developments. Commerzbank’s Antje Praefcke described the central bank’s stance as cautious, noting that this approach supports the Hungarian Forint (HUF).

For Japanese investors, understanding the MNB’s measured policy approach is important as it influences regional FX volatility and may impact emerging market equities exposure.