The National Bank of Hungary held its key interest rate unchanged at 6.50% for the eleventh consecutive meeting on September 23, in line with market expectations. The overnight deposit and collateralized loan rates also remained at 5.5% and 7.5%, respectively. Headline inflation remained at 4.3% in August, the second-highest in Central Europe and above the central bank’s 2–4% tolerance band, underscoring persistent price pressures. The forint rose to a 15-month high, bolstered by a wider interest rate differential following the US Federal Reserve’s recent rate cut, providing some relief for inflation. However, government-imposed price caps and delayed service sector price adjustments could trigger a post-election rebound in inflation, leaving upside risks for 2026. Overall, under Governor Mihaly Varga, the National Bank of Hungary has adopted a more cautious and firmly restrictive stance, moving decisively away from monetary easing.