The Council also left the O/N deposit rate at 5.25pc and the O/N collateralised loan rate at 7.25pc. The rates mark the ends of the central bank's symmetric interest rate corridor.

In a statement issued after the meeting, the Council acknowledged a decline in risk premia on domestic assets after the general election "driven in part by expectations related to EU funds and euro adoption".

"Looking ahead, it is key that the improvement in risk premia persists," it added.

"Maintaining tight monetary conditions is warranted," the Council said.

"A careful and patient approach to monetary policy remains necessary due to inflation risks arising from geopolitical tensions and the uncertain financial market environment," it added.

"The Council is constantly assessing the impact of incoming macroeconomic data and financial market developments on the inflation outlook, based on which it will take decisions on the level of the base rate in a cautious and data-driven manner," the rate-setters said.

Maintaining the stability of domestic financial markets, especially the foreign exchange market, is "crucial" for anchoring inflation expectations and thus achieving price stability, the Council added.

At a press conference following the decision, Mihaly Varga, the central bank governor, affirmed the Council's commitment to achieving the 3pc inflation target "in a sustainable manner".

He highlighted the unfavourable impact of geopolitical tensions on global inflation and growth outlooks.

He pointed to a decline in risk premia on domestic assets, but said the persistence of the decline and its impact on inflation outlooks remained to be seen.

Varga highlighted the need for a "stability-oriented" approach to monetary policy in the uncertain global economic environment. He said the policy-makers were following closely the effect of global and domestic factors on the inflation outlook.

Asked about the options weighed by the rate-setters at the meeting on Tuesday, Varga said they had discussed a single option which was supported unanimously.

Fielding questions, Varga said he had not yet spoken with Peter Magyar, the head of the Tisza Party, which won the April 12 election, but had discussed issues with Andras Karman, the Tisza Party's pick for finance minister, and would strive for "a good working relationship" with the new government.

Asked about an assertion by Andras Simor, a former central bank governor, that he had resigned from his position in the Erste Group because of pressure from the NBH's former management, Varga said he hoped a probe of the matter would wind up in days.

Press release on the Monetary Council meeting of 28 April 2026

MTI Stock Photo

Source: MTI – Hungary’s national news agency since 1881. While MTI articles are usually factual, some may contain political bias, and readers should be aware that such content does not reflect the position of XpatLoop, which is neutral and independent.

Since the goal of XpatLoop is to keep readers well briefed, right across the spectrum of opinions, MTI items are shared to ensure readers are aware of all narratives within the local media.

XpatLoop believes in empowering readers to form their own views through complete and comprehensive coverage. To facilitate this XpatLoop has a balanced range of news partners, as you can see when you surf around XpatLoop.com

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