The National Bank of Hungary is expected to keep its policy rate at 6.50% for a 14th straight meeting, maintaining a hawkish stance as inflation remains above target. Strong real interest rates, a fiscal expansion plan for 2026, and a current account surplus continue to support the forint, BBH FX analysts report.
"National Bank of Hungary is widely expected to keep rates steady at 6.50% for a 14th consecutive meeting (1:00pm London, 8:00am New York). The bank should also reiterate that 'For the rest of the year, inflation is expected to stay above the central bank tolerance band [3% +/-1%]'."
"The swaps market price-in 60bps of cuts over the next two years. Regardless, Hungary’s positive real interest rates, loose 2026 fiscal stance, and current account surplus (1.9% of GDP in Q2) favor a firmer HUF."