Hungary to Stick to Cautious Key Rate Policy

Hungary’s central bank is set to maintain the European Union’s highest borrowing cost for an 11th consecutive month, with policymakers prioritizing currency stability to the potential risk of premature monetary easing.

The National Bank of Hungary will keep the benchmark interest rate at 6.5% on Tuesday, according to all 18 economists in a Bloomberg survey. That’s on par with Romania for the highest key rate in the EU. The decision is scheduled for 2 p.m. in Budapest, followed by a briefing and statement an hour later.