The National Bank of Hungary held its key interest rate unchanged at 6.50% for the eleventh consecutive meeting on August 26, in line with market expectations. The overnight deposit and collateralized loan rates also stayed at 5.5% and 7.5%, respectively. According to preliminary estimates, annual GDP edged up 0.1% in Q2 2025, reflecting the economy’s sluggish growth. Headline inflation slowed to 4.3% in July, remaining above the central bank’s 4% tolerance threshold and well above the 3% target. Given the persistent inflationary pressures amid a weakening growth outlook, the National Bank of Hungary is likely to maintain a cautious stance on monetary policy in the near term.